Hot Rocks Power: Sage Geosystems Secures $97M for AI Energy

Sage Geosystems, a startup developing enhanced geothermal systems (EGS), has successfully closed a $97 million Series B funding round. Ormat Technologies, a major geothermal developer, co-led this investment, which is poised to accelerate Sage's project timeline by an estimated 12 to 24 months. The partnership with Ormat is expected to significantly reduce the time and costs associated with bringing EGS to market.

Sage's innovative technology focuses on accessing geothermal energy by creating underground fractures in hot, dry rocks. This approach allows for the circulation of water to generate electricity, distinguishing it from conventional geothermal systems that rely on underground steam. The company's strategy aims to make geothermal energy more accessible and cost-effective.

The startup's first commercial project in Nevada is scheduled to deliver four to six megawatts of power to the local grid in 2027. Sage also has a previously announced 150-megawatt deal with Meta Platforms Inc. to power its data centers, a project that will be informed by the Nevada initiative.

Despite current high costs compared to solar projects, next-generation geothermal systems hold significant future potential. The U.S. Energy Department projects EGS could provide up to 120 gigawatts of capacity by 2050, enough to power approximately 90 million homes. This funding and partnership mark a crucial step towards realizing that potential.