Geothermal Energy Could Meet U.S. AI Data Center Energy Needs with the Right Approach

Geothermal energy could become a key source of power for U.S. AI data centers, although this will depend on the location of specific data centers, writes Datacenter Dynamics, citing research from Rhodium Group. According to available data, geothermal power plants currently generate about 4 GW in the U.S., primarily in California and Nevada.

At the same time, almost all classic hydrothermal systems require special conditions below the earth’s surface, experts from Rhodium Group report. However, new methods such as deep or horizontal drilling make it possible to create geothermal power plants in a variety of locations, including, according to Rhodium experts, in close proximity to data centers. The latter in this case may not even need to be connected to the main power grid.

Rhodium predicts that AI data centers will develop according to the same pattern as traditional data centers before — they will eventually form large clusters near populated areas where there is available land and developed fiber-optic communication infrastructure, rather than reaching out to energy sources. The researchers believe that 55-64% of the projected growth in energy consumption of hyperscaler data centers can be covered by local geothermal energy sources — this is about 15-17 GW of capacity.

Image source: Rhodium Group

Geothermal energy is expected to meet the entire growing data center energy needs in 13 of the 15 largest U.S. markets, using the most efficient cooling methods. It could also cover at least 15% of the energy consumption in 20 of the 28 data center markets nationwide. If new data centers are built to take advantage of the best geothermal resources, these sources could fully cover the projected growth in data center energy consumption by the early 2030s. And using geothermal heat pumps to cool data centers could help reduce the overall electrical load.

Image source: Rhodium Group

However, significant challenges remain, from the need for permits and rights to use the resources, to a lack of data about the underground world, supply chain issues, and the need for additional research and federal incentives. In other words, success is not guaranteed, so interested parties should begin research now to properly assess the potential of the technology. At the same time, it is already emphasized that “green” electricity will be at least 20% more expensive than “regular” electricity.

Google has already entered into a power purchase agreement (PPA) with geothermal company Fervo Energy to support the power supply of a data center in Nevada, and Meta✴ has signed a similar deal with startup Sage Geosystems.