Technology giants are increasingly turning to geothermal energy as a clean and reliable power source for their energy-intensive data centers. This trend has been driven by a growing focus on reducing emissions and promoting sustainability in the tech industry.
Over the past year, several deals have been struck between Big Tech companies and geothermal start-ups, with the aim of powering data centers with low-carbon energy. This includes partnerships between Facebook and Sage Geosystems, as well as Google and Fervo Energy.
In addition to geothermal, nuclear power has also been identified as a key source of 24/7 low-carbon energy. Constellation Energy, the largest owner of U.S. nuclear power plants, recently signed a major power purchase agreement with Microsoft, which will help to restart the Three Mile Island Unit 1 nuclear plant.
However, while geothermal energy offers a faster and more cost-effective solution compared to building new nuclear reactors, it still faces challenges such as approvals, drilling technology, and high upfront costs for start-ups.
Furthermore, geothermal energy is facing increased competition from fossil fuels, particularly natural gas, which is easier to harness and can be classified as lower-carbon with the use of carbon capture and storage technology. This has led to some Big Oil companies, such as Chevron and Exxon, focusing more on natural gas than geothermal.
Despite these challenges, the partnership between Sage Geosystems and Meta, the owner of Facebook, is a significant step towards expanding the use of geothermal energy in the U.S. The project aims to deliver up to 150 MW of new geothermal baseload power to support Meta’s data centers, with the first phase expected to be operational by 2027.
Overall, the increasing interest in geothermal energy from technology giants and the potential for partnerships with Big Oil companies could have a significant impact on the growth and development of this clean energy source. It also highlights the growing importance of sustainability and emissions reduction in the tech industry.