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Meta taps Houston geothermal co. to power data center growth with clean energy

big tech

The Meta and Sage Geosystems project is reportedly the first next-generation geothermal project located to the east of the Rocky Mountains. Rendering by Sage Geosystems and Meta

A Houston company has signed a new agreement with Meta Platforms Inc. — Facebook's parent company — to power the tech giant's data center growth.

Houston-based Sage Geosystems agreed to deliver up to 150 megawatts of new geothermal baseload power to Meta. The companies made the announcement this week at the United States Department Energy’s Catalyzing Next Generation Geothermal Development Workshop.

The deal is significant because it's the first next-generation geothermal project located to the east of the Rocky Mountains, the companies report in a news release.

“This announcement is the perfect example of how the public and private sector can work together to make the clean energy transition a reality,” Cindy Taff, CEO of Sage Geosystems, says in the release. “We are thrilled to be at the forefront of the next generation of geothermal technology and applaud the DOE for supporting the commercialization of innovation solutions.

"As energy demand continues to grow, the need for reliable, resilient and sustainable power is paramount and our partnership with Meta underscores the critical need for innovative and sustainable energy solutions like ours,” she continues.

The project's first phase will aim to be operating in 2027. The plans reflect how geothermal is being recognized as a growing carbon-free energy source in the country, and how Meta is committed to clean energy initiatives.

“The U.S. has seen unprecedented growth in demand for energy as our economy grows, the manufacturing sector booms thanks to the Biden-Harris Administration’s Investing in America agenda, and new industries like AI expand,” U.S. Energy Deputy Secretary David Turk says. “The Administration views this increased demand as a huge opportunity to add more clean, firm power to the grid and geothermal energy is a game-changer as we work to grow our clean power supply.”

Sage's technology — called Geopressured Geothermal System — works deep in the earth to develop energy storage and geothermal baseload power.

“Meta thanks the Department of Energy’s leadership on promoting and supporting the exploration of new energy sources like geothermal," Urvi Parekh, head of renewable energy at Meta, says. "That leadership supports Meta’s goal to enable the addition of reliable, affordable, and carbon-free power to the grid with this geothermal energy deal. We are excited to partner with such an innovative company like Sage Geosystems that is a proven leader in geothermal development on this project and beyond.”

Sage recently teamed up with a utility provider for an energy storage facility in the San Antonio metro area to build its three-megawatt EarthStore facility.

The company is also working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas, which is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

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Houston’s power future: The role of energy efficiency and demand response

The View from HETI

In Houston, industrial expansion, advanced manufacturing, data centers, AI, electrification, and population growth are all increasing demand for power across the region. At the same time, the infrastructure needed to support that growth, from generation and transmission to distribution and storage, takes significant time and investment to plan and build.

This growing power demand creates a near-term challenge: how can the region support new investment while major grid projects are planned and built?

A new report from the Houston Energy Transition Initiative, “Role of Efficiency & Demand Response to Meet Near-Term Regional Power Demand”, examines how Houston can get more from the grid it has today. Its central finding: energy efficiency (EE) and demand response (DE) can create measurable grid “headroom” while new major infrastructure projects are being planned, financed, permitted and built.

Explore the key takeaways from the report:

Houston’s power challenge affects economic growth

Houston’s ability to attract industrial investment increasingly depends on reliable, affordable power. ERCOT and MISO Texas project major load growth through 2030 and 2035 from industrial development, data centers, AI, advanced manufacturing and electrification.

Efficiency and demand response can lower peak demand and help manage local grid constraints that could slow growth.

EE and DE are different tools, and Houston needs both

Energy efficiency creates lasting reductions in electricity use through equipment upgrades, building improvements and changes in operations. Demand response lets customers temporarily reduce or shift power use based on grid conditions, incentives or market signals.

Texas programs show measurable results

In 2024, Texas investor-owned utility programs delivered about 609 MW of evaluated demand reduction and 603 GWh of annual energy savings. The report puts the lifetime cost of saved energy at about $0.02 per kWh.
CenterPoint Energy accounted for more than 40% of ERCOT investor-owned utilities’ total demand reduction and energy savings. It achieved about 236 MW of peak demand reduction and 229 GWh of energy savings, above goals of 66 MW and 116 GWh.

Entergy Texas also achieved significantly more demand reduction and energy savings than its 2024 program year goals, with a reported 24 MW of peak demand reduction against a goal of 17 MW and 43 GWh of energy savings against a goal of 30 GWh.

Large power users can add flexibility

Data centers, industrial facilities and advanced manufacturers may be able to shift noncritical work, adjust cooling, use on-site resources or briefly cut consumption.

The report states that verified demand savings, flexible loads and behind-the-meter resilience could help reduce interconnection risk and support more cost-effective growth.

Technology can expand options

Storage, smart controls and energy management systems can work with efficiency and demand response. Smaller loads can also be combined across commercial buildings, multifamily developments and homes.

For Houston, these tools do not replace new generation, transmission, distribution or storage. They can help the region use existing infrastructure more effectively while new capacity is built, supporting reliable, affordable power and continued economic growth.

———

This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, visit htxenergytransition.org. Download your copy of Role of Efficiency & Demand Response to Meet Near-Term Regional Power Demand to learn more.

Clean energy leaders taking the stage at Houston Energy and Climate Week

expert voices

Some of the biggest names in the clean energy scene will be sharing their expertise in Houston this week.

From leaders fresh off one of the industry's biggest IPOs to local organizers, here's who's speaking at promising panels and anchor events during Houston Energy and Climate Week—taking place now through Sept. 18. Visit each event's website for a full lineup.

Read more about Houston Energy and Climate Week and its programming in Energy Capital's event preview. Or learn more about the startups pitching at events throughout the week here.

Energy Solutions in a New Era Hosted by JERA & Mitsubishi Heavy Industries — Sept. 15 at the Ion

  • Mary Dhillon, strategy manager at Fervo Energy
  • Ricky Sakai, SVP of investment & business development at Mitsubishi Heavy Industries America
  • Daniel Padilla, strategy & business development lead at Emerald AI
  • Adrian Trömel, chief innovation officer / interim vice president for innovation at Rice University (moderator)
  • Shigeki Uchihashi, VP of strategy & corporate venturing at JERA Americas

Cypher Pilotathon and Startup Showcase — Sept. 15 at POST Houston

  • Nada Ahmed, co-founder and CRO of Energytech Cypher
  • Taylor Chapman, investment principal at New Climate Ventures
  • Jason Ethier, co-founder and CEO of Energytech Cypher
  • Sean Kelly, CEO of Amperon
  • Ionel Nechiti, investment director for Aramco Ventures
  • Hema Prapoo, global energy industry leader from Microsoft
  • Ishan Rao, VP of commercial at Syzygy Plasmonics

Greentown Climatetech Summit — Sept. 16 at Greentown Labs

  • Arne Ballantine, co-founder of Ohmium International
  • David Baldwin, partner at SCF Partners
  • Christopher Hanson, former chair of the U.S. Nuclear Regulatory Commission
  • Tim Latimer, CEO and co-founder of Fervo Energy
  • Georgina Campbell Flatter, CEO of Greentown Labs
  • Nicolaus Radford, CEO and co-founder of Persona AI
  • Prag Mishra, chief AI officer at Armada
  • Jeremy Pitts, managing director at Activate
  • Bobby Gallagher, CEO, CTO and co-founder of Deployable Energy
  • Jason Wells, chair, president and CEO of CenterPoint Energy
  • Eliecer Viamontes, CEO of Entergy Texas

Rice Alliance Energy Tech Venture Forum — Sept. 17 at Rice University’s Jones Graduate School of Business

  • Laurent Alteirac, enabling technology development manager at SLB
  • Kemal Anbarci, managing executive and general manager of venture capital at Chevron Technology Ventures
  • Sameer Bandhu, managing director of ventures and licensing at GE Vernova
  • Brad Burke, former associate vice president at Rice Office of Innovation and former executive director of Rice Alliance for Technology and Entrepreneurship at Rice University (moderator)
  • Andres Cabada, managing director at Halliburton Labs
  • Quennie Co, managing partner at Shell Ventures
  • Rob Crane, technology scouting & venturing manager at ExxonMobil
  • Ira Ehrenpreis, founder and managing partner at DBL Partners
  • Menachem Elimelech, director of Rice Center for Membrane Excellence (RiCeME) at Rice University
  • Brian Iversen, founder & managing partner at Cimbria Capital
  • Dustin Kinder, CEO of Maverick Water Group
  • Megan Lund, lead of venturing strategy & strategic partnerships at Woodside Energy
  • Sean Maher, vice president of investor relations & chief economist at Phillips 66
  • Robert Mellors, SUPERHOT program director at ARPA-E
  • John (JR) Reale, interim associate vice president for industry and new ventures at Rice University and executive director of Rice Alliance for Technology and Entrepreneurship at Rice University
  • Chad Seely, SVP of regulatory policy, general counsel, chief compliance officer, and corporate secretary at ERCOT
  • David Sholl, executive vice president for research and professor of chemical & biomolecular engineering at Rice University
  • Jim Sledzik, managing director of strategic venturing, North America, at Aramco Ventures

New 160MW battery storage project comes online in Houston

powered on

Colorado-based energy storage company SMT Energy and North Carolina-based software company FlexGen have begun operations of Houston IV, a 160-megawatt utility-scale battery storage facility that aims to support the ERCOT grid.

The companies delivered the project in just six weeks, according to a news release. Mississippi-based Irby Construction Company served as the engineering, procurement, and construction (EPC) partner, and CenterPoint Energy will serve as the interconnecting utility.

“FlexGen’s distinctive combination of software automation, our remote operations center, and on-the-ground field expertise all work together to accelerate battery deployment,” Jason Rislov, SVP of operations at FlexGen, said in the release. “What used to take 25-plus weeks took us six. That time saved translates directly into giving the grid and consumers what they need most right now: a more reliable, resilient energy system.”

Houston IV is one of more than 12 projects that SMT and FlexGen have built to connect to ERCOT, according to Energy Storage News.

“Bringing a 160-MW battery storage facility online in just six weeks required disciplined planning, seamless coordination, and an unwavering focus on safety and quality,” Shaun Coleman, project manager at Irby Construction, said in a news release. “The SMT Energy, FlexGen, and Irby Construction teams coordinated engineering, procurement, and construction to keep every workstream aligned, identify challenges early, and maintain safety and quality at an accelerated pace. That integration is critical, not only to delivering projects quickly, but also to ensuring battery storage facilities perform reliably over the long term.”

Houston IV is expected to store and provide enough electricity to power 8,800 homes in Texas annually. In March, SMT Energy secured $135 million in funding for the project from Macquarie and KeyBanc Capital Markets as joint lead arrangers. SMT and FlexGen broke ground to signal the start of the process in May.

In 2023, SMT Energy and joint venture partner SUSI Partners also announced plans to add 10 battery storage projects to Texas, which would double capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas.

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