Enhanced geothermal: long-term clean power — for some

Geothermal systems harness heat from rocks deep underground to provide renewable power that, unlike wind or solar, is firm and steady. At present, geothermal power is only available in limited quantities and in specific locations. Enhanced geothermal systems (EGS) use techniques developed in the oil and gas industry to make geothermal power available in other locations. As these systems develop and extend over the next 10 years, data center operators considering adoption will need to allow for the high capital expense, often requiring utility-scale investment — even for on-site installations. In addition, operators may have to locate their facilities near expanding geothermal sources.

KEY POINTS

• Underground heat sources can provide continuous (“firm”), low-carbon geothermal power, but this has only been exploited in limited locations, where geological formations are favorable. EGS extends geothermal potential by utilizing fracking techniques to create favorable conditions in other locations.
• EGS could provide significant power for data centers within the next 10 years, both behind the meter and via electricity grids. During the early stages of development, US data center developers wanting access to EGS power may need to move projects to the western US, where initial EGS developments will be located.
• EGS projects have a high capital cost and lengthy development timelines (a minimum of four years). As a result, only the largest operators will have the resources to fund them directly, with installation costs likely shared with grid operators.
• EGS is a long-term power option alongside nuclear small modular reactors (SMRs) and offers a viable alternative should the widescale deployment of SMRs be delayed or run into difficulties.