Geothermal's New Dawn: How XGS and Baker Hughes Aim to Power the Grid

HOUSTON, TX – March 25, 2026 – By George Flores

In a move set to dramatically alter the energy landscape of the American Southwest, XGS Energy and energy technology giant Baker Hughes have unveiled a strategic collaboration to develop a landmark 150-megawatt geothermal project in New Mexico. The project is designed to deliver a steady, round-the-clock stream of clean electricity to the Public Service Company of New Mexico (PNM), specifically supporting the vast, power-hungry data center operations of Meta in the state.

This partnership signifies more than just a new power plant; it represents a fusion of next-generation technology with proven industrial-scale execution. By bringing together XGS's innovative, geology-independent geothermal system with Baker Hughes's comprehensive 'ground-to-grid' expertise, the collaboration aims to unlock geothermal energy's potential as a reliable, baseload power source, capable of powering the digital economy and stabilizing the renewable energy grids of the future.

Decoupling Power from Geology

For decades, geothermal energy has been a promising but geographically constrained clean energy source, limited to regions with a rare combination of underground heat, water, and permeable rock. XGS Energy is pioneering a solution to shatter these constraints.

The company's proprietary 'solid-state' geothermal system does not rely on naturally occurring underground reservoirs of hot water or steam. Instead, it uses a closed-loop system and a key innovation: a thermally conductive material that is pumped down a wellbore. This material solidifies around the well's casing, acting as a highly efficient heat exchanger that dramatically extends the 'reach' of the well into the surrounding hot rock. This Thermal Reach Enhancement (TRE) technology, validated in a successful commercial-scale demonstration in California, reportedly boosts heat extraction by 30-50% compared to standard wells.

By creating a man-made, highly efficient heat transfer system deep underground, XGS effectively decouples power generation from local geology and water availability. This breakthrough reduces exploration risk, simplifies permitting, and opens up vast new territories for geothermal development wherever there is hot rock.

"With this single project for Meta in New Mexico, XGS will increase the state’s operating geothermal capacity by tenfold,” said Ghazal Izadi, XGS’s Chief Operating Officer. The statement underscores the project's immense scale and the transformative potential of the technology to rapidly deploy clean, firm power.

Powering New Mexico's Clean Energy Transition

The project arrives at a critical moment for New Mexico. The state's ambitious Energy Transition Act (ETA) mandates that investor-owned utilities like PNM source 50% of their electricity from renewables by 2030 and achieve a 100% zero-carbon portfolio by 2045. Meeting these targets requires a massive build-out of new generation, but relying solely on intermittent sources like solar and wind creates significant grid stability challenges.

Geothermal power offers a solution. As a baseload resource, it generates electricity 24/7, regardless of weather conditions, providing the firm capacity needed to balance the grid and ensure reliability. This is particularly vital for energy-intensive customers like Meta, whose Los Lunas data center campus requires an uninterrupted, high-quality power supply to support its global operations.

Meta, which has powered its global operations with 100% renewable energy since 2020, has been a key partner in driving clean energy development in New Mexico. The addition of a large-scale geothermal resource provides the 24/7 carbon-free energy that is essential for truly decarbonizing critical infrastructure and aligns with Meta's goal to achieve net-zero emissions across its value chain by 2030.

From Innovation to Execution

A groundbreaking idea is only as good as its execution. This is where the strategic collaboration with Baker Hughes becomes paramount. The energy technology company brings decades of experience in complex subsurface projects, from drilling and well construction to delivering integrated power solutions on the surface.

"The difference between a great idea and a great asset is the quality of execution in the field," noted Martin Craighead, a Board Director at XGS Energy. "This agreement reflects XGS’s priority to surround its innovation with executors that have decades of experience delivering complex energy infrastructure at industrial scale."

Baker Hughes will apply its 'ground-to-grid' capabilities from the earliest stages, providing engineering services to reduce technical risk, validate the geothermal reservoir, and design an integrated system for efficient and reliable power delivery. This early-stage involvement is designed to smooth the path from engineering blueprints to a fully operational, utility-scale power plant.

"By collaborating with XGS at this early stage, we are applying our ground‑to‑grid capabilities to reduce technical risk, accelerate reservoir validation, and engineer an integrated solution to deliver first power efficiently and reliably,” affirmed Maria Claudia Borras, a senior executive at Baker Hughes.

This partnership model—pairing a nimble technology innovator with an industrial heavyweight—is seen as essential for scaling next-generation energy technologies and turning the promise of advanced geothermal into gigawatts of clean, reliable power on the grid. With a phased approach targeting the first 5 MW online around 2027, this New Mexico project will serve as a crucial testbed and a powerful blueprint for the future of the global energy transition.