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Geothermal could power nearly all new data centers through 2030
A Rhodium Group analysis suggests that advanced geothermal power could fulfill nearly two-thirds of new U.S. data center energy demand by 2030, potentially quadrupling capacity from 4 to 16 gigawatts. Utilizing deeper drilling techniques, startups are enhancing geothermal resource extraction, making it a competitive and efficient power solution amidst rising energy demands from AI and cloud services.
Key points
- Advanced geothermal power could meet nearly two-thirds of new data center energy demand by 2030.
- Current geothermal capacity in the U.S. may increase from 4 gigawatts to 16 gigawatts, facilitating energy needs for growing data platforms.
- Geothermal resources can supply 100% of energy for new data centers in Western U.S., particularly in areas like Phoenix.
- Startups are innovating in geothermal technology, utilizing horizontal drilling and microwave vaporization to access deeper heat sources.
- Geothermal energy presents low operational costs, found to be competitive at $75 per megawatt hour, potentially dropping to $50 depending on siting.
Why it matters
- The growing dependency on data centers aligns with the increasing adoption of AI technologies, amplifying energy demands.
- Historical limits of geothermal technology are challenged by advanced methods which could provide vast clean energy resources.
- Similar trends in sustainable energy solutions have emerged with companies innovating in energy efficiency and renewable sources as of 2025.
Advanced geothermal energy presents a promising and sustainable solution to the imminent energy needs of data centers, leveraging technological advancements that could reshape future energy sourcing by 2030.