XGS Energy

XGS Energy is a US enhanced-geothermal developer founded to commercialise the technology of pumping water through hot dry rock to generate electricity — known as Enhanced Geothermal Systems (EGS). In May 2026, XGS's 150 MW New Mexico project became the highest-profile geothermal deal in the data-centre sector, with Meta as the anchor customer and Baker Hughes, the oilfield-services major, as development partner. The project is designed to deliver 24/7 carbon-free baseload power — the specific attribute that solar and wind cannot provide — making it directly responsive to the DOE curtailment order that threatens behind-the-meter gas generation.

XGS Energy was founded by a team from the oil and gas services sector and is backed by venture capital. The company's core innovation is adapting directional drilling and reservoir engineering techniques from oil and gas to create artificial geothermal reservoirs in hot dry rock. Unlike conventional geothermal, EGS is not limited to locations with natural hydrothermal activity; the western US, with its hot basement rock at accessible depths, is the primary target geography. New Mexico's Basin and Range geology provides the subsurface temperature gradient the project requires.

The Meta partnership is significant beyond its 150 MW nameplate: it is the first major hyperscaler to commit publicly as an anchor customer to an EGS project at this scale. If the project reaches commercial operation, it validates the EGS model for data-centre procurement and opens a new route to 24/7 carbon-free power that does not require co-location with natural geothermal resources.