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AI's energy hunger fuels geothermal startups but natural gas rivalry clouds future

Economic TimesEconomic Times Ā· 3d
AI's energy hunger fuels geothermal startups but natural gas rivalry clouds future

Geothermal energy startups are gaining traction as tech giants like Meta and Google look to power their AI data centers. While geothermal has been promoted as a faster, carbon-free alternative to nuclear energy, startups face challenges such as high upfront costs and lengthy project approval times. Oil majors like Chevron and Exxon Mobil are doubling down on natural gas, but smaller oil and gas producers and service companies are showing interest in geothermal. Geothermal aims to compete on cost, with the average levelized cost of electricity in the US being competitive with other dispatchable energy sources. Texas has emerged as a hotspot for geothermal exploration and development, thanks to abundant resources and favorable regulatory conditions. With government incentives and increasing private investments, the sector is receiving bipartisan attention.

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