Big Tech places bets on geothermal energy to feed AI data centers

Big Tech turns to geothermal for AI energy needs: Geothermal energy startups are gaining traction among Big Tech companies like Meta and Google, eager to power their energy-hungry AI data centers, Reuters reported last week. While the size of investments in the sector remains lower than needed — a USD 700 mn in financing since 2022, more than 60 startups have come to life in this time, the executive director of the industry association Geothermal Rising told Reuters.

The benefits: Unlike wind and solar energy’s intermittent nature, geothermal provides consistent, reliable, carbon-free electricity. It also can scale faster than nuclear energy, given its dependence on the mature tech of oil and gas drilling.

The challenges: High upfront costs and slow approval processes are two major obstacles facing geothermal’s uptake. Most of the movers are also small or medium-sized companies, with energy majors adopting more of a “wait-and-watch” approach while doubling down on natural gas, CEO of Sage Geosystems Cindy Taff told Reuters.