US Geothermal Energy Surges With 26 New Power Deals

America just hit a milestone that could change how we power our future, and most people haven't even heard about it yet.

The National Laboratory of the Rockies just released numbers showing geothermal energy is having a breakout moment. Between 2021 and 2024, companies and communities signed 26 new agreements to build geothermal power plants. That's more than double the nine deals signed in the previous five years combined.

These aren't small projects either. Together, they represent over 1,000 megawatts of new clean energy capacity under development, enough to power hundreds of thousands of homes.

The growth goes beyond just more plants. US geothermal capacity reached 3,969 megawatts in 2024, an 8% jump from 2020. That might sound modest, but consider this: from 2015 to 2019, capacity only grew by 1%.

What changed? Technology got dramatically better and cheaper. At a Department of Energy demonstration site in Utah, engineers cut drilling time from 310 hours in 2020 to just 110 hours in 2023. Faster drilling means lower costs, and lower costs mean geothermal can compete with other energy sources.

The real game changer is something called enhanced geothermal systems. Unlike traditional geothermal plants that need natural hot springs, these next generation systems can work almost anywhere. Fervo Energy is building a massive 500 megawatt enhanced system in Utah called Cape Station, the first of its kind at commercial scale.

Tech companies are paying attention. Several of the new power agreements will supply electricity to artificial intelligence data centers, which need reliable clean energy around the clock. Geothermal delivers that better than solar or wind because it runs 24/7.

The Ripple Effect goes beyond electricity. Geothermal heat pumps are spreading across homes and businesses nationwide, cutting heating and cooling costs. Eight states have launched programs to build thermal energy networks that can heat and cool entire neighborhoods, campuses, and housing complexes using geothermal energy.

Private investors are betting big on this future too. Since 2021, they've poured more than $1.5 billion into next generation geothermal companies. Nearly $500 million of that came as debt financing, a sign that banks now see the technology as proven and reliable rather than risky.

Even oil and gas companies are getting interested. Some are exploring lithium extraction from geothermal brines, turning clean energy sites into sources of critical minerals for batteries.

"We have seen the power expansion estimated in the 2021 report become reality," said Dayo Akindipe, lead researcher on the report. The progress captured in four short years shows what happens when innovation meets investment.

Lauren Boyd, who directs the Department of Energy's geothermal office, called it exciting to see awareness and possibility growing for this often overlooked energy source.

The momentum suggests geothermal is finally getting its moment, promising clean, reliable power that works day and night, rain or shine.