Utah could see a geothermal energy boom — but it'll take water to make it happen
New geothermal technologies could provide reliable clean electricity for energy-intensive data centers, including Fervo Energy's Cape Station project in southwest Utah. However, many geothermal systems require significant water, raising concerns in the drought-prone West where data centers also consume water for cooling.
Geothermal developers are seeking to meet growing data center electricity demand with reliable, around-the-clock renewable power. Fervo Energy is developing its Cape Station project in southwest Utah and expects its first phase to provide 100 megawatts by the end of 2026; Google has agreed to purchase 396 megawatts from the facility. Meta and Google have also signed agreements with geothermal startups elsewhere in the West, while Oracle has proposed up to 2 gigawatts of new renewable generation in New Mexico, potentially including geothermal.
The technology faces significant water challenges. Enhanced geothermal systems can lose water underground, while closed-loop systems use less water but may produce less power and cost more. Researchers at Utah FORGE are testing ways to reduce water losses, but experts warn that geothermal development serving data centers could intensify competition for scarce Western water supplies, particularly in drought-affected states.