Geothermal could power nearly all new data centers through 2030

There’s an influence crunch looming as AI and cloud suppliers ramp up information middle development. However a brand new report suggests {that a} answer lies beneath their foundations.

Superior geothermal energy may provide almost two-thirds of recent information middle demand by 2030, in line with an analysis by the Rhodium Group. The additions would quadruple the quantity of geothermal energy capability within the U.S. — from 4 gigawatts to about 16 gigawatts — whereas costing the identical or lower than what information middle operators pay as we speak.

Within the Western U.S., the place geothermal sources are extra plentiful, the know-how may present 100% of recent information middle demand. Phoenix, for instance, may add 3.8 gigawatts of knowledge middle capability with out constructing a single new standard energy plant.

Geothermal sources have monumental potential to supply constant energy. Traditionally, geothermal energy crops have been restricted to locations the place the Earth’s warmth seeps near the floor. However superior geothermal methods may unlock 90 gigawatts of unpolluted energy within the U.S. alone, according to the U.S. Division of Power.

Superior or enhanced geothermal encompasses a variety of approaches, however typically they drill deeper and wider than earlier than. That permits them to entry hotter rocks — which interprets into extra energy — and pack extra geothermal wells onto a single property. The sector has seen a surge of startups in recent times, pushed partially by data and know-how borrowed from oil and fuel corporations.

Fervo Power, for instance, was based by former oil and fuel engineers to develop geothermal’s potential utilizing horizontal drilling methods perfected over the previous few a long time. The corporate raised over $200 million in 2024 on the heels of great value reductions in properly drilling.

One other startup, Bedrock Power, is drilling deep to reduce geothermal’s footprint, permitting space-constrained workplace buildings and information facilities to extract extra energy from their restricted footprints. The corporate’s specialised drilling rigs bore down greater than 1,200 toes to faucet constant warmth 12 months spherical. 

Quaise Power’s know-how appears like one thing out of science fiction. The startup vaporizes rock utilizing microwaves generated by gyrotrons. By skipping conventional drill bits, Quaise hopes to drill as deep as 12.4 miles (20 kilometers). At that depth, the rocks are almost 1,000 levels F 12 months spherical, providing almost limitless quantities of warmth to drive turbines or heat buildings.

Whereas most corporations are utilizing the Earth’s skill to supply and retailer warmth, one other startup is utilizing it to retailer vitality one other approach. Sage Geosystems has been injecting water into wells underneath strain. When energy is required, it could possibly open the faucets and run the water via a turbine, kind of like an upside-down hydroelectric dam.

As a result of geothermal energy has very low working prices, its worth is aggressive with information facilities’ vitality prices as we speak, the Rhodium report stated. When information facilities are sited equally to how they’re as we speak, a course of which generally takes into consideration proximity to fiber optics and main metro areas, geothermal energy prices simply over $75 per megawatt hour.

However when builders account for geothermal potential of their siting, the prices drop considerably, right down to round $50 per megawatt hour.

The report assumes that new producing capability could be “behind the meter,” which is what specialists name energy crops which might be connected on to a buyer, bypassing the grid. Wait instances for brand spanking new energy crops to connect with the grid can stretch on for years. Because of this, behind the meter preparations have turn into extra interesting for information middle operators who’re scrambling to construct new capability.