Meta Platforms, the parent company of Facebook (NASDAQ:META), has entered an agreement with Sage Geosystems to purchase geothermal power for its US data centres.
This deal aligns with Meta’s ongoing efforts to bolster infrastructure to support its substantial investments in energy-intensive artificial intelligence (AI) technologies.
The first phase of the 150-megawatt geothermal project is expected to become operational by 2027, significantly expanding the utilisation of geothermal energy within the United States.
Although the precise location of the project remains undecided, it will be situated east of the Rocky Mountains. The financial details of the agreement were not disclosed.
Geothermal energy, a renewable power source harnessing the Earth’s internal heat, has a relatively modest footprint in the US, accounting for only 0.4% of power generation.
Sage Geosystems, a Houston-based startup, has developed next-generation geothermal technology that can be deployed in more locations than traditional methods.
This project will be the largest undertaken by Sage, which is supported by key players in the oil and gas industry, including Chesapeake Energy (NYSE:CHK) and Nabors Industries.
Meta announced the deal during a US Department of Energy event focused on geothermal development.
The Biden administration has been urging large technology companies to invest in clean energy to meet the growing electricity demand driven by AI technologies, which could complicate the administration's goal of decarbonising the power sector by 2035.
A Meta spokesperson indicated that the energy generated by Sage Geosystems would feed into the power grid rather than supply specific data centres directly. Meta’s AI initiatives have led to increased infrastructure expenses, with 2024 capital expenditure projected between US$37 billion and US$40 billion.