New report finds geothermal can power data centers at costs competitive to natural gas

AI generated summary

A recent report by Project InnerSpace and Future Ventures highlights the potential of geothermal energy to power data centers at costs comparable to those of combined-cycle natural gas plants. The analysis indicates that a theoretical 1-GWe geothermal project in the Western United States could achieve a levelized cost of energy (LCOE) of approximately USD 50/MWh within the next 10 to 15 years, contingent upon investment, policy support, and technological advancements.

While this LCOE is competitive, it relies on the application of investment tax credits (ITCs). Without these credits, the LCOE could rise to $119/MWh, which, although still lower than nuclear power costs, underscores the importance of maintaining ITCs for geothermal projects. The report suggests that a government investment of $10 billion could significantly reduce the unsubsidized LCOE for enhanced geothermal systems, positioning it favorably against natural gas in the near future.