Meta & XGS: 150MW Dry Geo Anchors NM Data Centre Chain
Meta links up with XGS Energy to develop 150 megawatts of geothermal energy in New Mexico, a project that combines the tech company’s data centre ambitions with water-free clean power.
As demand for AI infrastructure continues to rise, the partnership aims to meet the energy needs of this growing sector without placing extra pressure on water supplies or traditional power sources.
Meta’s agreement with XGS Energy hopes to support the company’s AI and cloud expansion using clean baseload energy, with a total capacity of 150MW planned over two development phases. This geothermal power will connect directly to the PNM (Public Service Company of New Mexico) electric grid and will supply Meta’s New Mexico data centres. Critically, it achieves this without using any water in operation.
XGS Energy’s approach departs from traditional geothermal systems that rely on water and specific geological conditions.
Instead, the firm uses solid-state geothermal technology, deploying thermally conductive materials to pull heat from hot, dry rock formations. This not only removes the need for large water resources but also breaks away from the usual geographical constraints.
Josh Prueher, Chief Executive at XGS Energy, comments: “We’re pleased to support Meta’s ambitious AI objectives and accelerate access to new round-the-clock power supplies.”
He adds that New Mexico is becoming a central location for data centre development, and the company is eager to supply geothermal energy “at a scale uniquely possible with XGS technology”.
New Mexico, despite having some of the best high-temperature rock resources in the US, currently operates only one geothermal plant. By tapping into previously unusable areas, this project boosts the state's total geothermal output by a factor of ten.
Supply chains and the energy transition
From a supply chain perspective, the XGS-Meta agreement reflects a broader shift toward integrating sustainable energy solutions into high-demand digital infrastructure.
Data centres, particularly those powering AI systems, place a heavy burden on grids and water supplies. A typical data centre uses around 300,000 gallons of water a day to prevent overheating, according to Lenovo. That’s about the daily use of 100,000 households.
Meta’s growing network of data centres – including a planned US$1bn site in Wisconsin – creates intense demand for reliable, renewable energy. The partnership with XGS is not only a technical solution but a logistical one, ensuring power supply stays steady without contributing to water stress.
With XGS’s systems decoupled from groundwater and operating at high efficiency even in dry conditions, supply chains become less reliant on unpredictable weather or location-specific constraints.
The project also creates benefits for the state. Governor Michelle Lujan Grisham calls it a key development for local infrastructure: “New Mexico is not only the second-largest oil and gas producer in the US, but also one of the nation’s leading sources of clean energy.
“We’ve worked hard to ensure New Mexico remains at the forefront of the energy transition, and geothermal energy represents a promising new frontier.
“XGS Energy and Meta’s 150 MW project will create good-paying jobs, strengthen our grid with reliable baseload power and position our state as a national leader in next-generation renewable energy.”
New energy, new digital futures
Both phases of the 150MW project are scheduled to be online by 2030. While the first phase is smaller, the second will deliver the majority of the capacity. All of it will feed into the PNM grid and power Meta’s operations across New Mexico.
Meta sees geothermal as a reliable solution to meet growing AI infrastructure demands.
Urvi Parekh, Global Head of Energy at Meta, explains: “Advances in AI require continued energy to support infrastructure development.
"With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player in supporting the advancement of technologies like AI as well as domestic data centre development.”
Don Tarry, President and CEO of PNM, adds: “We’re proud to support this innovative, carbon-free project from Meta and XGS Energy.
"This project is a meaningful step toward meeting New Mexico’s clean energy goals and demonstrates the power of advanced technology to shape our energy future.”
The partnership showcases how technological innovation, combined with strategic infrastructure planning, can shift energy systems away from traditional limitations.
As Meta pushes further into AI and cloud platforms, energy sourcing becomes as central as server design. Projects like this hint at how large-scale digital operations may evolve over the coming decade, as efficiency and sustainability both take precedence.
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