Could Big-Tech's Move Into Geothermal Energy Power The Next Real Estate Boom?

As the world's Big Tech companies battle for AI supremacy, finding the power to fuel AI is becoming a mission-critical priority. The problem is AI consumes as much energy as it does data, if not more. That's why companies like Meta and Alphabet (Google) are looking at geothermal energy as a potential power source and this energy hunt could spark the next real estate boom. 

This kind of scenario is not without precedent. Any time a new industry with AI's potential to change the way the world works pops up, it spawns a whole economic ecosystem for business sectors that provide logistical support. Take the data center, for example. Twenty-five years ago, there was a limited need for them. Data center REITs are making multibillion-dollar investments to satisfy AI's data demand. 

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AI's power demands are even more pronounced and geothermal energy offers significant advantages over other "green" power sources like solar and wind, which can only function in certain conditions. Contrastingly, geothermal energy can pump power 24 hours a day, seven days a week, regardless of the weather. Department of Energy research shows that geothermal energy could supply 90,000 gigawatts of power by 2050. 

That's why Meta and Alphabet are so enamored with its potential. Meta has just partnered with a startup called Sage Geosystems to produce 150 gigawatts of geothermal energy. Sage uses a method similar to fracking but differs in that it would produce "clean" energy. 

It works by pumping water into subterranean pockets of geothermal energy deposits to heat it, then pumping the hot water back up to the surface, where it would power giant turbines and produce clean energy. The project is searching for a suitable location "East of the Rocky Mountains" and is set to break ground by 2027. 

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Alphabet also recently announced its own foray into the geothermal energy business by partnering with Fervo Energy. They're working on a new venture called Project Red in Northern Nevada, providing clean energy for Alphabet's data centers. Plans are underway to amplify that project's power and put 115 megawatts of geothermal energy into Nevada's electric grid. 

This is where the real estate boom could happen. Both the construction and operation of these geothermal energy plants will require massive build-outs in terms of public infrastructure and private industry. That means jobs and workers need homes and retail outlets. If geothermal energy is a permanent fixture in these areas, whoever gets the jump on land ownership will be in a great position to profit. 

The good news is that right now, land in northern Nevada and the mountains "East of the Rockies" is relatively affordable. Better yet, those are not the only areas with geothermal energy potential. If you've been looking for a real estate opportunity, areas where Big Tech is building geothermal energy infrastructure might be a great place to start.

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