Geothermal energy companies in the western United States are expanding their operations to meet the growing demand for clean, reliable power from data centers. These facilities, which house servers for tech giants like Meta and Google, require constant electricity, and geothermal energy offers a steady power supply that aligns with corporate sustainability goals. Google has committed to purchasing 396 megawatts of power from Fervo’s Cape Station in Utah, while Meta has supported a 150-megawatt project by XGS Energy in New Mexico. This surge in interest reflects a broader shift toward renewable energy sources that can provide continuous power, unlike solar or wind, which depend on weather conditions. However, the expansion of geothermal energy faces a major hurdle: water use. Most modern geothermal technologies require significant amounts of water, particularly for cooling and heat transfer processes. This is a concern in drought-prone regions like New Mexico, where data centers already use large volumes of water to keep their servers from overheating. To address this, XGS Energy is developing a closed-loop system that recycles water, significantly reducing consumption. This system uses a continuous pipe to transfer heat from underground, minimizing water loss during the process. Despite these innovations, experts caution that closed-loop systems may not be ideal for large-scale power generation. Dr. Roland Horne from Stanford University points out that such systems typically produce less power and have shorter operational lifespans compared to conventional geothermal methods. Enhanced geothermal systems, which involve injecting water into hot rock formations to generate steam, are more widely used but also consume more water. For instance, Fervo’s Project Red in Nevada reported a 30 percent water loss, although the company claims lower losses at its Utah facility. The potential water demand for large-scale geothermal projects is substantial—generating 2 gigawatts of power could require up to 42 million gallons of water daily, equivalent to half of Albuquerque’s daily water use. To mitigate these challenges, companies like Fervo are using brackish (salty) groundwater at their Utah project, which helps avoid depleting fresh water supplies. Still, ensuring a consistent water supply remains a key issue, especially as public concern grows over the environmental impact of data centers. Additional obstacles include securing access to power transmission lines, navigating complex geology, and managing high drilling costs, which can deter investment. Research initiatives like Utah FORGE are working to reduce water use by improving drilling techniques and well spacing. As the demand for clean energy grows, the geothermal industry’s ability to balance power production with sustainable water use will be critical to meeting both data center needs and broader regional energy goals, such as California’s plan to achieve 100 percent clean electricity by 2045.