With the exponential increase in data center energy demands, brought on by the AI surge, tech companies are seeking creative solutions to prevent their energy-intensive operations from reaching energy constraints. One potential solution lies just beneath the Earth’s surface. This week, Ormat Technologies announced a contract to supply up to 150 megawatts of geothermal power to NV Energy to help support Google’s expanding data center operations in Nevada.

Google has long been a pioneer in geothermal energy, integrating it into their sustainability efforts since 2008, and continues this trend with its latest initiatives. Ormat’s agreement aims to more than double its currently supplied geothermal energy, pending approval from the state’s Public Utilities Commission. If approved, these energy plants are anticipated to be operational between 2028 and 2030.

Geothermal energy production involves drilling deep into the Earth to access its heat. For instance, a Google collaboration with Fervo Energy used hydrocarbon industry techniques to create a geothermal plant capable of generating 3.5 megawatts by drilling twin wells thousands of feet below the surface.

While still small scale, these projects represent a significant step toward supplying future data center power needs, projected to exceed gigawatt levels due to the rise of AI. Transitioning to geothermal helps not only in reducing carbon footprints but also in enabling sustainability amidst growing digital infrastructure requirements. Furthermore, despite challenges such as requiring substantial initial investments and overcoming technical barriers, experts suggest that geothermal could eventually meet a substantial portion of data center energy demands by the 2030s.

Meta, another tech giant, is similarly exploring geothermal options, demonstrating a broader industry trend focused on sustainable energy partnerships. The broader adoption of such technology depends heavily on overcoming the economic challenges posed by premium costs and ensuring sustained policy support, particularly around tax incentives for renewable energy.