XGS Energy and Meta Launch Ambitious 150 MW Geothermal Partnership in New Mexico
XGS Energy, Inc. (XGS) and Meta Platforms, Inc. (Meta) have announced a landmark agreement to develop 150 megawatts (MW) of advanced geothermal energy in New Mexico, underscoring their shared commitment to powering future technologies with clean, reliable electricity. This partnership signifies a critical step in addressing the growing energy demand driven by digital infrastructure—particularly data centers and artificial intelligence (AI) technologies.
The project will leverage XGS Energy’s proprietary geothermal technology, which allows for the production of baseload geothermal electricity without consuming any operating water. This innovation enables power generation in arid regions and from non-traditional geothermal resources, making it well-suited for deployment across New Mexico’s hot, dry geology. The electricity produced will be delivered to the Public Service Company of New Mexico (PNM) grid and used to support Meta’s expansive data center operations in the state.
Josh Prueher, CEO of XGS Energy, stated, “We’re proud to partner with Meta to advance their ambitious AI goals while expanding access to round-the-clock, clean electricity. New Mexico is rapidly emerging as a data center hub, and with our water-independent geothermal technology, we’re poised to meet that demand sustainably and at scale.”
XGS’s approach redefines traditional geothermal constraints. By decoupling energy production from the need for water and permeable rock formations, the company is unlocking vast new geothermal frontiers. Although New Mexico currently hosts only one operational geothermal plant, the region harbors some of the best subterranean heat resources in the United States. This partnership aims to increase the state’s geothermal power generation tenfold with just this single project.
Meta echoed the importance of this shift. “AI development requires sustained, clean energy,” said Urvi Parekh, Meta’s Global Head of Energy. “With technologies like XGS reaching scalability, geothermal can play a vital role in powering both technological advancement and our data centers. We’re excited to unlock this new energy category for our operations in New Mexico.”
The broader significance of this development was highlighted in a new report titled “The Future of Geothermal in New Mexico”, released by Project InnerSpace, New Mexico Tech, and the New Mexico Bureau of Geology and Mineral Resources. The report estimates that New Mexico holds over 160 gigawatts (GW) of untapped geothermal potential—more than 1,000 times the current in-state geothermal capacity.
New Mexico Governor Michelle Lujan Grisham praised the initiative as a transformative moment for the state’s energy landscape. “We’ve worked diligently to ensure that New Mexico leads the nation in clean energy innovation. Geothermal represents an untapped frontier. The XGS and Meta partnership will not only create good-paying jobs but will also provide stable baseload power, strengthening our energy grid and economic future.”
The project will unfold in two phases—an initial, smaller-scale phase followed by a larger second phase. Both are expected to be operational by 2030 and fully integrated into the PNM grid. PNM President and CEO Don Tarry expressed strong support for the endeavor: “This collaboration between Meta and XGS Energy represents a meaningful leap forward in achieving New Mexico’s carbon-free goals. It shows how innovation can lead the way to a sustainable energy future.”
Meta’s participation in the project adds to its growing reputation as one of the world’s leading corporate purchasers of clean energy. The company has made major investments globally to ensure its operations are powered by sustainable sources, including wind, solar, and now, next-generation geothermal.
For XGS, the deal marks another major milestone in its rapid growth and technological advancement. The company is currently scaling up to deliver on a multi-gigawatt pipeline of geothermal projects worldwide, aiming to redefine how geothermal is deployed and who it can serve.
This 150 MW initiative symbolizes more than just a power agreement—it signals a shift in how advanced energy solutions can address modern infrastructure demands. As AI and data center usage surge, projects like this one show that it’s possible to meet energy needs without compromising environmental integrity or water resources.
In a world increasingly focused on climate resilience and energy innovation, the XGS-Meta partnership offers a powerful blueprint for how public and private collaboration can unlock a sustainable, scalable, and regionally transformative clean energy future.
