Harnessing Geothermal Energy for the Future of AI Data Centers

In a revolutionary analysis conducted by Project InnerSpace, experts have explored the feasibility of utilizing geothermal energy to meet the burgeoning power demands of hyperscale AI data centers. This comprehensive technoeconomic study highlights the potential of a 1 gigawatt (GW) geothermal energy project to not only provide electricity but also cooling, thus serving dual purposes essential for running such expansive operations.

The findings, outlined in their report titled "From Core to Code Powering the AI Revolution with Geothermal Energy," indicate that, with adequate investments and favorable policy support, the costs associated with geothermal energy could drop significantly. Predictions suggest that by 2035, the cost per megawatt-hour (MWh) of geothermal energy could fall below $50, making it competitive with, or even cheaper than, both nuclear and natural gas alternatives.

The U.S. is estimated to have a staggering 3,400 GW potential geothermal energy capacity available with current drilling technologies. This creates a unique opportunity to utilize the existing oil and gas workforce, where around 80% of their skills are transferable to the geothermal sector. This transition not only fosters job creation but also enhances energy independence while contributing to climate goals.

One of the study's key insights is that geothermal energy operates effectively as a baseload energy source for AI data centers. This characteristic allows these facilities to draw energy without relying on the broader electricity grid, which is particularly advantageous amidst rising energy demands and increasing competition in the AI sector. Given the energy-intensive nature of data control and processing, the ability to harness geothermal energy sustainably positions the sector advantageously.

Furthermore, the study revealed that, under current conditions, implementing a first-of-its-kind 1 GW geothermal project in a region rich with geothermal resources could yield electricity and cooling at a competitive rate of approximately $88 per MWh, factoring in existing tax credits. However, by continuing to invest in market development and supply chain innovations, experts foresee a realistic downturn in costs to between $50 and $60 per MWh by the year 2035.

Notably, investment tax credits could play a pivotal role in this transition. An estimated $11 billion in investment tax credits for the initiation of the 1GW project could lead to an impressive 61% cost reduction from the current $88 per MWh to $50 or less by 2035. Such financial incentives not only bolster the geothermal industry but also provide savings for data center operators, potentially amounting to $3.2 billion over three decades by utilizing excess geothermal energy for direct cooling—a significant percentage of total energy consumption in data centers, often ranging from 30% to 40%.

Mehdi Yusifov, Director of Data Centers and AI at Project InnerSpace and a co-author of the study, emphasized the strategic importance of reliable energy sources, stating, "Data centers are critical infrastructure that will underpin global competition for AI supremacy, so we must find reliable, affordable energy sources to power them. Geothermal energy holds great promise for powering the data center growth boom if we create the policy environment to encourage it."

The geothermal sector possesses the necessary expertise, supply chains, and commitment to embark on this transformative journey. Nico Enriquez, a Principal at Future Ventures and co-author of the study, stated, "The geothermal industry has the know-how, the supply chain, the workforce, and the vision. It is ready to scale and primed to meet the baseload power needs of data centers."

In support of these projections, GeoMap—an extensive global subsurface mapping database created by Project InnerSpace—has recently incorporated a data center module, designed to assist technology companies in pinpointing optimal locations for geothermal-powered data centers.

As an organization, Project InnerSpace, recognized as a 501(c)3 non-profit, aims to promote the global adoption of geothermal energy. The team, consisting of scientists, geologists, and engineers, is dedicated to synergizing the visionary insights of entrepreneurs with groundbreaking geoscientific expertise to innovate for a future powered by abundant and accessible geothermal energy. For further details, visit ProjectInnerSpace.org or connect through LinkedIn.

By tapping into geothermal energy, the potential exists not only to revolutionize the energy sector but also to place AI data centers at the forefront of sustainable development and energy independence.