Aug 8, 2025

Geothermal energy backed by a US initiative to speed up data center infrastructure.

Geothermal power generation could benefit from a recent Executive Order by the Trump Administration aimed at speeding up federal permitting for data center infrastructure in the U.S. This order seeks to reduce regulatory burdens for AI data centers and their supporting infrastructure, including power generation and transmission facilities.

Specifically, “geothermal power equipment” is listed among the “Covered Components” in the order—these are essential materials and infrastructure for data center projects. Consequently, geothermal power projects or facilities that manufacture geothermal power equipment can qualify as “Covered Component Projects” under this order.

Covered Component Projects may gain advantages if they meet the criteria for “Qualifying Projects,” which include:

- An incremental electric load addition exceeding 100 MW;
- Projects that safeguard national security;
- Projects backed by at least $500 million in capital expenditures from the Project Sponsor;
- Projects designated as “Qualifying Projects” by the Secretaries of Defense, Interior, Commerce, or Energy.

The Executive Order aims to promote the development of these Qualifying Projects through various measures such as:

- Potential financial support, including loans, guarantees, grants, tax incentives, and offtake agreements;
- New categorical exclusions for actions related to Qualifying Projects that typically do not significantly impact the human environment;
- The opportunity to transition eligible Qualifying Projects to FAST-41 “covered projects”;
- Accelerated permit reviews on Federal and non-Federal lands;
- Identification of suitable sites on Federal lands for competitive leasing to Qualifying Projects.

Several planned data center projects in the U.S. and globally are already being developed to utilize geothermal power, including initiatives by Meta in New Mexico and Google in Taiwan.