Facebook owner Meta Platforms has announced a significant step in its quest to power its energy-intensive data centers by securing a deal to purchase geothermal energy from Sage Geosystems. The move reflects Meta’s commitment to expanding its infrastructure to support its rapidly growing investments in artificial intelligence (AI).
Expanding Geothermal Energy Use in the U.S.
As part of this new venture, Meta has agreed with Sage Geosystems to tap into geothermal power, a renewable energy source that harnesses the Earth’s internal heat to generate electricity. The first phase of the project is expected to deliver 150 megawatts of power, enough to supply electricity to approximately 38,000 homes. Meta anticipates that this project will be operational by 2027, marking a significant expansion in the use of geothermal energy in the United States.
Although the exact location of the geothermal project has not yet been finalized, Meta and Sage Geosystems have confirmed that it will be situated east of the Rocky Mountains. This project represents Sage Geosystems’ largest endeavor to date, showcasing the company’s innovative technology, which allows geothermal energy to be harnessed in more diverse locations than traditional methods. This is a crucial development, as traditional geothermal energy is limited to areas with naturally occurring underground reservoirs of hot water.
Aligning with Clean Energy Goals
Meta’s partnership with Sage Geosystems aligns with the Biden administration’s call for technology companies to invest in new clean power generation. The administration has been encouraging companies like Meta to seek out renewable energy sources to meet their increasing electricity demands. The surge in energy consumption is largely driven by the adoption of AI technologies, which require massive amounts of power to operate data centers effectively. The Biden administration’s goal is to decarbonize the power sector by 2035, a target that is becoming increasingly challenging as tech giants like Meta continue to expand their AI capabilities. The deal with Sage Geosystems is a critical component of Meta’s strategy to balance its energy needs with the growing pressure to reduce carbon emissions.
Meta’s AI Ambitions and Infrastructure Expansion
Meta’s recent focus on generative AI has led to substantial infrastructure overhauls, with the company working to adapt its data centers to handle the specific demands of AI workloads. These upgrades have significantly increased Meta’s operational expenses. Last month, the company projected that its capital expenditures for 2024 would range between $37 billion and $40 billion, with a strong emphasis on infrastructure costs driving expense growth into 2025.
The geothermal energy from Sage Geosystems is expected to feed into the broader power grid rather than being directly allocated to any particular Meta data center. This strategic move not only supports Meta’s AI-driven initiatives but also reinforces the company’s broader commitment to sustainability and renewable energy sources.
By embracing geothermal power, Meta is not only addressing its immediate energy needs but also contributing to the broader effort to combat climate change, setting a precedent for other tech companies to follow suit in the transition to clean energy.