The hottest energy in tech: Why AI is turning to geothermal and vice versa

Artificial Intelligence needs power, and lots of it. And, as the demand for generative AI and large-scale data centers ramps up, so does the need for energy. Clean, reliable, and always available; geothermal is a natural fit, and AI can help harness it.

Tech giants lead the charge
Tech giants are now seeing the value in investing in geothermal over the long-term to gain access to consistent baseload power that matches the 24/7 operational requirements of data centers. In May 2024, Microsoft and G42 announced plans for a geothermal-powered data center in Kenya, as part of a $1 billion investment, which is hoped will eventually deliver 1GW of sustainable power. A few months later, Meta signed a 150 MW power purchase agreement with Sage Geosystems for operations in the US. And earlier this year, Google entered into a partnership with Baseload for the supply of geothermal energy in Taiwan, which will add an initial 10 MW of clean energy to the national grid.

The perfect storm of demand
So why now? Geothermal isn’t exactly a new phenomenon, even if the technology to gather it has seen significant improvements. According to the International Energy Agency (IEA), global data center electricity demand, driven largely by AI requirements, could more than double by 2026. Simultaneously, traditional energy sources such as oil and gas are not only unsustainable, but geopolitical tensions are forcing many nations to seek alternatives `from home´ that they can rely upon. Tech companies also face mounting pressure to lower their environmental impact from customers and governments, while maintaining reliable services around the clock. And that’s where, yet again, a clean, always available resource like geothermal, delivers.

AI powers geothermal innovation
The AI relationship goes both ways. While geothermal is powering AI, AI is also powering geothermal advancement. It is already helping geothermal developers make more informed decisions. From analyzing seismic, thermal, and geological data to identify promising sites and streamline drilling operations, which ultimately reduces costs and risks, and increases output. Looking ahead, the potential goes even further. Recent research points to a future where AI could enable exploration from magma chambers (as yet a valuable and untapped source), track and reduce harmful emissions at extraction sites, and forecast energy demands in order to regulate production so the right level of energy is delivered. While still emerging, AI will clearly play a key role in scaling geothermal faster.

AI needs geothermal. And geothermal needs AI. 
This powerful combination is not only reshaping the way energy is powering the future, it’s redefining what’s possible when cleantech and intelligent tech meet. Now, as we stand on the brink of an AI-driven future, the steady, reliable, heat beneath our feet, may prove to be a key resource as we move forward. The earth has energy, and AI is helping to switch it on.

Do you want to be part of the clean energy future?
At Baseload Capital, we offer early-stage capital debt to accelerate geothermal projects developed by our Baseload Power companies. To each new business in our portfolio, we bring equity, financial structuring and knowledge. We match each phase in each geothermal project with the right kind of financial instruments to secure long-term profitability and success.

Our owners and investors include Google, Chevron, Baker Hughes, and Gullspång, among others, and we have power plants across Europe, North America and Asia, helping to deliver clean and continuous energy to the grid. Read more about how you can get involved here.