The U.S. stands at a pivotal crossroads in its energy future. As artificial intelligence (AI) accelerates its transformation of industries and daily life, the nation’s appetite for electricity is surging to unprecedented levels.
AI data centers are already consuming about 4% of U.S. electricity, with projections indicating this could rise to 12–15% by 2030. The explosive growth of AI, from large language models to autonomous vehicles, is placing strains on the power grid.
Based on some recent discussions I have had with friends and my geologist husband, I assert that geothermal energy deserves urgent and serious consideration alongside fossil fuels and nuclear power as the perfect “trifecta” for America’s energy strategy. Unlike intermittent renewables, geothermal offers stable, 24/7 baseload power… reliability that is essential for supporting the always-on demands of AI-driven data centers, our critical infrastructure, and the electricity needs of U.S. consumers.
Also, and most importantly, it leverages existing American expertise in drilling and subsurface engineering, providing a pathway for oil and gas workers use their talents to expand our nation’s energy options.
There have been some critical breakthroughs in recent years that make utilizing geothermal energy more effective and efficient. There have been significant advances in enhanced geothermal systems (EGS), which enable geothermal energy production in areas previously deemed unsuitable due to a lack of natural permeability or water resources. A DOE-funded project conducted by the University of Utah demonstrates the enormous potential for developing this particular energy source.
A major University of Utah-led geothermal research project, funded by the U.S. Department of Energy (DOE), achieved a critical breakthrough in April after hydraulically stimulating and circulating water through heated rock formations a mile and a half beneath its drill site in the Utah desert and bringing hot water to the surface. The test results are seen as an important step forward in the search for new ways to use Earth’s subsurface heat to produce hot water for generating emissions-free electricity. The successful well stimulations and a nine-hour circulation test were the fruits of years of planning and data analysis at the Utah FORGE facility near Milford, 175 miles southwest of Salt Lake City.
As highlighted in the recent Issues & Insights article, new geothermal projects are coming online with greater efficiency and lower costs, thanks to innovations such as closed-loop systems and enhanced geothermal systems.
These common drilling techniques should enable geothermal developers to reach “hot spots” located deeper below the surface than thought possible just a few years ago. They could also expand the map for geothermal development far beyond the Western states.Small wonder that investor interest in geothermal energy has surged in recent years, with more than $1 billion raised since 2022. Tech companies on the hunt for suppliers of baseload electricity to power their data centers see the potential of geothermal energy. Amazon, Google, Microsoft, and Meta – all heavyweights in the booming AI/data center sector – have all inked contracts with geothermal developers….Geothermal’s potential to join fossil fuels and nuclear energy in powering America’s economy in the years to come far exceeds anything weather-dependent wind and solar could ever match. With the House version of the budget reconciliation bill accelerating the phase-out of the subsidies that prop them up, these once-coddled industries are scrambling to stay relevant.
As the article notes, bureaucratic bungling has been the biggest hurdle for geothermal energy to overcome. Therefore, Rep. Celeste Maloy (R-UT) has introduced the Geothermal Energy Opportunity Act (GEO Act, H.R. 301), which aims to expedite the federal permitting process for geothermal energy projects.
She is also pairing it with another piece of legislation to help peel back the layers of regulatory tape.
…[T]he permitting process for geothermal energy production itself needs to be shortened, Garfield said, calling out the National Environmental Policy Act, or NEPA, a 1970 law that requires the federal government to conduct an environmental review before moving forward with infrastructure projects.{Deputy Director of the Utah Office of Energy Development Jake] Garfield said offering geothermal projects certain exemptions under NEPA would help the industry — like what’s being proposed by Maloy through her Geothermal Energy Opportunity Act, which requires the U.S. Department of Interior to process a geothermal drilling permit within 60 days.Maloy is also sponsoring the Streamlining Thermal Energy through Advanced Mechanisms Act, which gives the geothermal industry the same flexibility as the oil and gas industry, cutting some of the regulations when pursuing a project on public land that’s already been studied or disturbed by industry.
With governments and private investors increasingly recognizing the potential of geothermal energy, I believe the sector is poised for significant growth in the coming years. As an added bonus, geothermal plants are not known to kill whales or bald eagles.
Image by perplexity.ai.
CLICK HERE FOR FULL VERSION OF THIS STORY