Geothermal energy startups are on the increase, thanks to energy-hungry AI
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The rise in energy demand to power AI systems has spurred a new breed of investments – geothermal energy startups to complement energy supplies. According to a Reuters report, geothermal energy startups are on the increase as big tech firms are looking at feeding their power-intensive data centers. Despite this surge, long-term investments in the sector remain uncertain as oil majors double down on gas. Simply put, geothermal energy is heat energy from the earth. Geothermal energy startups increased in the last two years According to Bryant Jones, the executive director for the industry association Geothermal Rising, the environment has been improving lately, in terms of ease of doing business which has seen more than 60 startups spring to life in the last two years. “Texas is becoming the ‘place to be’ for geothermal exploration and development across the board,” said Matt Welch at the Texas Geothermal Energy Alliance (TxGEA). “Much of this is due to an abundance of identified geothermal resources, 1-stop shopping permitting process, and our regulatory certainty.” Welch. According to an industry report published last year, at least 10 of the geothermal startups launched between 2016 and 2022 in the US were headquartered in Texas. Now, the obtaining lower commodity prices might encourage more shale companies to diversify their revenue streams and tap into geothermal power. The Enhanced Geothermal Shot analysis in 2022 confirmed the potential for more geothermal electricity generating capacity – 90 gigawatts by 2050. These developments also come as AI data centers have emerged as high-energy consumers, forcing big techs to look elsewhere for alternative energy sources to keep their data centers running with sufficient and sustainable power. “We believe geothermal, along with abundant natural gas, can be part of the all-of-the-above energy mix we need to meet the demand,” said Trey Lowe, chief…
