Geothermal energy startups are gaining traction as major tech companies like Meta and Google’s parent company Alphabet partner with them to provide clean energy for their AI-powered data centers.
These companies are racing to meet the rising energy demands of artificial intelligence while accelerating the adoption of clean technologies, according to Reuters.
Large data center operators are competing to fulfill the growing energy demands of artificial intelligence, driving the rapid adoption of various clean technologies in the process.
“We believe geothermal, along with abundant natural gas, can be part of the all-of-the-above energy mix we need to meet the demand,” said Trey Lowe, chief technology officer at U.S. shale gas producer Devon Energy, an investor in geothermal startup Fervo Energy.
Geothermal energy is seen as a quicker path to carbon-free electricity compared to nuclear, offering more reliability than wind and solar.
However, startups face significant challenges, including high upfront costs for drilling and lengthy project approval processes.
These hurdles have dampened initial enthusiasm, resulting in limited investments—analysts estimate that just over $700 million has been invested in geothermal projects since 2020.
Top shale oil producers like Chevron, Diamondback Energy, and Exxon Mobil are increasingly promoting natural gas as a key fuel for electricity generation.
They are also offering to collaborate with utilities to integrate carbon sequestration projects with power plants, aiming to reduce greenhouse gas emissions.
“In general, (there is) a lot more interest from smaller oil and gas producers as well as service companies … we’ve talked to Chevron and Shell, but the supermajors seem to be taking more of a wait-and-watch view,” said Cindy Taff, CEO of Sage Geosystems.
Sage recently completed a $30 million fundraising round led by U.S. shale gas producer Expand Energy (formerly Chesapeake Energy) and plans to launch its Series B round in January.
