Data centers, like those used for artificial intelligence and cloud storage, use a massive amount of energy. A recent report from the United States Department of Energy predicts that data centers will consume between 6 and 12 percent of all American electricity by 2028. For comparison, the entire country’s residential power use (energy consumed in buildings like homes and apartments) accounts for around 20 percent of current energy consumption. 

As data centers consume more power, energy solutions are necessary to meet increased energy demand while lowering carbon emissions. Expanded geothermal power might provide a solution that meets both these objectives. 

Geothermal plants contribute about 4 gigawatts of electricity annually to America’s power grid. That is enough electricity to power roughly 3.5 million homes for a year. However, geothermal makes up only 0.4 percent of our annual energy makeup. Why? 

Nearly every geothermal plant in the United States relies on conventional hydrothermal technology. These plants use wells drilled deep into the ground to access hot water or steam, which is then used to spin turbines that generate electricity before being injected back into the ground. Conventional geothermal plants are naturally limited, as they require specific geological conditions to drill. This complex process is one reason for the low amount of energy generated by geothermal in the United States. However, next-generation geothermal technologies are not reliant on the same geological conditions as conventional technologies and, therefore, have the potential to expand geothermal capacity. 

One example is enhanced geothermal systems (EGS); EGS uses hydraulic fracturing and horizontal drilling to create fractures in the earth. Liquid is then injected into these fractures to be warmed by the heated rock structures present deeper in the earth. This technology can effectively replicate the situations necessary for conventional geothermal wells across the country, presenting an opportunity to scale geothermal generation capacity.  

>>>READ: New Map Shows Geothermal Energy’s Potential for Abundant, Clean Power

While EGS is not the only next-generation geothermal technology out there, it has great potential. The U.S. Department of Energy asserts that EGS has the potential to power 65 million homes and businesses, calling it “the next frontier for renewable energy deployment.” 

Data centers would specifically benefit from the increased use of EGS technology, especially when developed for ‘behind-the-meter’ generation. Behind-the-meter energy infrastructure is located on consumer property and goes directly from generation to consumption or storage without being funneled into the broader power grid first. Some common examples of behind-the-meter energy generation are residential solar panels and battery storage. 

In examining the use of behind-the-meter EGS in powering data centers, Rhodium Group asserts that geothermal can meet 100 percent of anticipated data center demand growth in 13 of the 15 largest markets for these centers. 

“In this note, we’ve identified the compelling economic opportunity that exists for behind-the-meter geothermal power generation to meet growing electricity demand from hyperscale data centers,” the group states. “In parts of the West traditionally associated with geothermal, but also in other pockets where data center clusters may develop, behind-the-meter geothermal can cost-competitively provide clean, firm power while helping data centers avoid challenges of plugging into the grid.”

Rhodium Group highlights several roadblocks hindering the growth of EGS and suggests a few ways to address them, such as clarifying behind-the-meter regulations and scaling up supply chains. One key suggestion is reforming the permitting process. New geothermal projects are often mired in red tape. Institute for Progress suggests that one way to streamline this process is to extend the permitting categorical exclusions the oil and gas industry receives to cover geothermal exploratory drilling and some well development. 

Will behind-the-meter EGS technologies eventually become a go-to source for powering data centers? Time will tell. For now, it remains a strong possibility. 

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.