Can you tell me about XGS Energy and what it does?
XGS Energy is a Houston-based next-generation geothermal company delivering clean, baseload power around the clock. Our closed-loop, solid-state technology generates power without relying on water or specific geology, meaning we can deploy our system anywhere there is hot rock. With a modular design, proven field results, and simpler permitting, we’re providing reliable, financeable baseload energy to meet soaring power demand with near-term projects like our 150 megawatt (MW) agreement with Meta in New Mexico to support their data center development on the PNM grid.
Recently, XGS achieved a major industry milestone by successfully operating a full commercial-scale system for over 3,000 hours, making XGS the first company to demonstrate a water-independent, closed-loop geothermal system at commercial reservoir temperatures (>120°C) and scale. This sets XGS apart in a crowded but largely unproven space and underscores geothermal’s potential to meet AI-driven electricity demand using reliable, clean power with zero consumptive water use, zero fracking and zero carbon emissions.
What next-generation geothermal technology are you deploying across the US to advance the energy transition?
XGS Energy has developed a geothermal system that removes the traditional dependence on water and geology, delivering affordable, clean energy anywhere there is hot rock.
Historically, geothermal resources have been hard to locate, as conventional systems require the overlap of hot rock, porous and permeable geology, and abundant water to produce energy, limiting their potential to a few select hot spots worldwide. Instead of relying on an underground fracture network that drives geology and water requirements, the base component of XGS’s system is a single well drilled to hot rock, where we circulate working fluid within a sealed, steel casing, creating a fully closed-loop. XGS leverages our major innovation, a proprietary thermally conductive materials system that is installed downhole around each well, to increase the heat transferred to the closed-loop system by 30-50 percent.
This allows XGS to produce geothermal energy anywhere there is hot rock, unlocking terawatt-scale potential in the US alone. Additionally, this design delivers reliable, predictable power for decades by eliminating underground risks that have traditionally constrained the geothermal industry such as water losses and unpredictable drops in temperature. XGS is delivering dependable, zero-emission baseload energy that utilities, data centres, and infrastructure investors can trust.
Are there particular areas of the US where this technology is suitable for deployment?
XGS’s system can be deployed wherever there’s hot rock, which is abundant across the globe. That’s a big differentiator from conventional geothermal, which requires a rare combination of hot rock, porous and permeable geology, and abundant water. XGS’s water-independence further unlocks development in water-stressed states across the US west, which contains the highest potential geothermal resources. Our early projects are focused in California and New Mexico, where we already have more than 180+ MW of offtake commitments and a multi-GW pipeline.
How scalable is this technology?
XGS’s modular system design is highly scalable, allowing XGS to build projects from 5 MW distributed assets to 200 MW to GW+ utility-scale projects. Because we’re not limited by water or geology, the siting options are far broader than traditional geothermal, with many early-stage sites demonstrating GW-scale potential for full field development. Our project in New Mexico is a prime example of this scalability. XGS’s 150 MW project with Meta will immediately deliver ten times the geothermal operating capacity in the state, and will be the first step in developing the 160 GW of dry, hot rock potential that Project Innerspace recently identified in the state. We’re scaling to deliver multiple gigawatts of clean, firm energy across the US and beyond.
What’s the current demand for geothermal energy in the US?
According to McKinsey, next-generation geothermal could supply about 40 gigawatts of US power by 2035 and up to 100 gigawatts by 2050, enabled by technologies that can tap vast hot-rock resources far beyond traditional geothermal regions. Demand for this clean, firm power is soaring, driven by growing data centre electricity needs, utilities seeking reliable baseload energy to balance renewables, and policymakers pursuing projects that create jobs and long-term regional growth. XGS is uniquely positioned to meet this near-term, pre-2030 demand through low-risk and rapid site exploration, simpler permitting enabled by its no-fracking, no-water-use design, and readily available components from mature supply chains.
You recently partnered with Meta to help decarbonise data centres, what other partnerships have you got in the pipeline?
Our recent partnership with Meta to decarbonise data centres in New Mexico is the first announced project in our multi-gigawatt pipeline that spans three core customer categories: 1) hyperscaler and data centre developers who need round-the-clock, carbon-free power to support AI and cloud growth, 2) utilities seeking a firm, clean backbone for grid reliability while meeting emissions targets, and 3) commercial and industrial partners such as defense and advanced manufacturing, where energy resilience and operational continuity are paramount.
To deliver these projects at scale and speed, XGS is partnering with leading EPC and oilfield service providers to leverage proven drilling expertise and integrated project delivery models, accelerating development timelines and reducing execution risk.
Are you getting any federal support and if so what form does this take?
XGS is leveraging robust federal tax credits for geothermal in its projects, and is actively evaluating how new permitting procedures like FAST-41 may be applied to accelerate responsible development of eligible sites. XGS and the geothermal industry broadly benefit from a largely domestic supply chain and workforce, building from the scale and experience of the oil and gas industry, in strong alignment with national energy priorities.
Anything else you would like to mention?
Geothermal is the largest untapped energy resource in the world. XGS is making this vast resource deployable, financeable, and scalable. With low-risk and expedited site evaluation, faster permitting thanks to no fracking or consumptive water use, and readily available components from mature supply chains, we’re meeting urgent energy needs without the wait.
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