WHY IS IT IMPORTANT TO BUILD DATA CENTRES AROUND GEOTHERMAL RESOURCES?

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Geothermal energy offers a reliable, efficient, and resilient solution to the growing power and cooling demands of modern data centres, particularly those supporting AI and hyperscale computing. Rather than being retrofitted, geothermal should shape site selection and facility design from the outset, enabling lower energy use, reduced water consumption, and long-term operational stability.

Key Insights:

• Rising AI workloads and hyperscale growth are pushing traditional grid-based power and cooling systems beyond their limits
• Geothermal energy provides constant, renewable, and dispatchable cooling using the Earth’s stable subsurface temperatures
• Designing data centres around geothermal resources from the earliest planning stages unlocks maximum efficiency, resilience, and cost predictability
• Benefits include improved energy efficiency (lower PUE), minimal water use, reliable cooling for high-density racks, and long-term infrastructure durability
• Geothermal complements intermittent renewables like solar by providing consistent thermal management while solar offsets electrical demand
• Environmental impacts are generally low for closed-loop systems, with most risks concentrated during drilling and site development
• Key challenges include geological suitability, site selection trade-offs, regulatory approvals, and the difficulty of retrofitting existing facilities

Beneath the surface of the Earth lies a source of power that has been quietly heating the planet for millennia - and now, it could be the key to transforming the way we build the digital world.

In the race to meet soaring demand for AI processing and hyperscale computing, data centres can no longer rely on yesterday’s approach: build first, then scramble to manage energy and cooling. Instead, the solution is emerging from below - geothermal energy.

Geothermal energy offers a fundamentally different path forward. Not as a retrofit solution bolted onto existing facilities, but as a resource that should shape where data centres are built, how they're designed, and how they operate for decades to come.

RED believes that data centres designed around geothermal energy aren’t just greener - they’re smarter, more resilient, and ready to meet the demands of the next era of computing. This article explores why that approach should be shaping the future of data centre design.

The growing energy and cooling challenge facing data centres

Data centres are facing unprecedented pressure from multiple directions. Hyperscale facilities powering cloud services keep expanding, while the surge in AI adoption has introduced workloads with power densities that dwarf traditional IT infrastructure. GPU-heavy racks now draw 50-100 kW or more - ten times the load of conventional server racks.

The old way of doing things (plug into the grid first, design cooling around it) assumes that energy will always be available and that cooling can scale linearly - but reality, neither is guaranteed:

• Grid capacity is stretched in many regions, energy prices swing unpredictably, and the impact of high-carbon grids makes long-term planning tricky.
• Cooling systems built for steady, predictable loads can’t keep up with the heat generated by modern AI clusters.
• Water-based cooling is under increasing scrutiny in regions with water stress.
• Mechanical chillers add energy overhead, operational complexity, and maintenance requirements.

The industry needs solutions that go beyond short-term fixes. It needs approaches that make data centres more efficient, resilient, and ready for the next wave of demand. Geothermal energy could provide the answer.

What is geothermal energy used for?

Geothermal energy is heat stored beneath the Earth's surface, originating from the planet's formation and the ongoing radioactive decay of minerals deep underground. Unlike solar or wind, which vary by time of day or season, geothermal is constant - available 24 hours a day, year-round.

For data centres, two types of geothermal systems are relevant:

1. Shallow geothermal: depths of 10-400 metres, using ground-source heat pumps to exchange heat with the stable subsurface.
2. Deep geothermal: higher-temperature resources at greater depths, typically for electricity generation. 
   

For most data centres currently operating, the focus is on thermal management rather than power generation. The Earth acts as a large, stable heat sink. Geothermal systems circulate fluid through underground pipes or wells, transferring heat to or from the ground, allowing reliable cooling regardless of outside conditions.

Geothermal is both renewable, because heat is continuously replenished, and dispatchable - available on demand, without the need for storage or backup systems. For data centres, which can’t afford downtime or cooling interruptions, this combination of renewability and reliability is critical.

Why geothermal changes how data centres should be designed

Geothermal isn't a technology you add to a data centre - it's a resource you design around. Retrofitting an existing data centre is complex, costly, and rarely optimal. The geology dictates where wells can be drilled, how deep they need to go, and how much thermal capacity is available; without early planning, the potential benefits are limited.

Understanding how geothermal energy works helps engineers plan site layouts, well depths, and thermal exchange infrastructure from the start. Rather than choosing a location based solely on grid availability, land cost, or connectivity, geothermal-led design asks: where are the best subsurface thermal resources? This might mean building in regions with known geothermal potential, or conducting detailed geological surveys before committing to a site.

With the resource identified, campus-scale planning becomes possible. At EcoCloud’s “Project Eagle” data centre development within KenGen’s Green Energy Park at Olkaria, the facility is designed for twenty-four megawatts of IT load, supplied entirely by geothermal energy purchased from KenGen. Total site demand is expected to reach around seventy megawatts once mechanical and electrical infrastructure is included, with on-site geothermal intended to support the full facility, not just computing equipment.

The development is planned as a multi-building campus, with multiple technical and support facilities served by a shared geothermal backbone. KenGen’s Green Energy Park master plan includes offices, research facilities, administrative buildings, and visitor infrastructure, all designed to operate on geothermal power from the surrounding fields.

Designing around geothermal also improves long-term resilience. Geothermal systems have fewer moving parts than conventional mechanical cooling systems, require less maintenance, and reduce exposure to refrigerant supply risks. Cooling performance is also less affected by energy price volatility, supporting more predictable operational costs over the life of the development.

What are the advantages of geothermal energy?

Geothermal cooling uses the Earth’s stable subsurface temperature to provide reliable, year-round thermal management. Unlike conventional air or evaporative systems, its performance is predictable and resilient under varying conditions. Key benefits include:

• Stable, predictable cooling - Performance is not affected by outdoor temperature, heatwaves, or humidity. Baseline thermal management remains consistent, even under extreme conditions.
• Energy efficiency - Circulating fluid through ground loops uses less energy than moving large volumes of air or running mechanical chillers, improving overall Power Usage Effectiveness (PUE).
• Reduced water consumption - Closed-loop systems require minimal water, unlike evaporative cooling, which can use millions of litres annually - critical in water-stressed regions.
  High-density and AI workloads - Provides continuous cooling for concentrated, sustained heat from high-power racks or AI clusters.
• Resilience and reliability - Fewer moving parts and simpler mechanical processes reduce maintenance needs and dependence on grid stability.
• Long-term durability - Properly designed geothermal infrastructure can operate for decades with minimal performance degradation, unlike air- or chiller-based systems that lose efficiency over time.
  

How geothermal works with other renewable energy

Solar energy is widely used in data centres to reduce carbon emissions, and rightly so. It's widely available, increasingly cost-effective, and helps offset grid electricity use during peak demand. But solar has a fundamental limitation: it's intermittent. Panels only generate power when the sun is shining, so batteries or backup power are needed to cover nighttime and cloudy periods.

Geothermal, by contrast, runs all the time. It provides steady, reliable cooling 24/7 without depending on weather, storage, or backup systems. For data centres, which operate 24/7 and cannot tolerate cooling interruptions, this reliability is essential.

The two resources are complementary, not competitive:

• Solar offsets daytime electricity demand and reduces grid reliance.
• Geothermal provides consistent cooling and reduces energy spent on mechanical systems.
• Hybrid planning ensures both resources are optimised, with solar handling power supply and geothermal handling thermal management.
  

However, an effective hybrid design requires early coordination. Solar arrays need land, grid connections, and battery storage planning, while geothermal needs geological surveys, wells, and heat exchange infrastructure.

When planned together from the start of a project, these systems can be optimised to work in parallel - solar reducing electrical load, geothermal reducing cooling load, and both contributing to long-term sustainability and energy independence.

What is geothermal energy’s Environmental impact

Geothermal systems have a relatively low environmental footprint, though impacts depend on system type. Most effects occur during development, particularly drilling, which can disturb subsurface formations and, in rare cases, trigger minor seismic activity. For data centres, which typically use shallow or closed-loop systems for cooling, these risks are limited and well understood.

During operation, closed-loop geothermal cooling uses minimal water, avoiding the ongoing consumption required by evaporative systems. By reducing reliance on grid-powered chillers, geothermal cooling also lowers carbon emissions. Because performance is largely independent of ambient air temperature, efficiency remains stable even during heatwaves when grid emissions are often at their highest.

The challenges of implementing geothermal in data centre design

Geothermal isn’t suitable everywhere. Subsurface conditions vary: some sites have good heat exchange potential, while others have hard rock or complex groundwater that makes drilling difficult or costly. Detailed geological surveys are essential to assess what are the disadvantages of geothermal energy at a given site and ensure reliable cooling performance.

Site selection can also be a constraint. The areas with the best geothermal resources may not coincide with ideal locations for grid access, connectivity, or land cost, so trade-offs between thermal potential and other site priorities are often necessary.

Planning and approval processes are also complex. Drilling permits, environmental impact assessments, and regulatory approvals for subsurface work can extend project timelines. In some regions, geothermal development faces more scrutiny than traditional mechanical systems, particularly where groundwater or seismic risks exist.

Retrofitting geothermal into existing facilities is harder still. Buildings, power distribution, and cooling infrastructure are already in place, leaving limited space for drilling or ground loop installation. Existing data centres may benefit from hybrid approaches, such as adding geothermal to supplement rather than replace mechanical systems, but the full advantages are only realised when geothermal is designed in from the beginning.

Why geothermal belongs in the earliest stages of data centre planning

Geothermal energy is a resource that should define the site from the outset. Decisions about geothermal need to come before site selection, architectural design, and mechanical systems specification. This is a shift from traditional planning, but it’s the only way to fully realise its benefits.

This approach helps future-proof data centres. By integrating it into the design, facilities can reduce reliance on stressed energy grids, minimise water use, and lower carbon emissions - challenges that are becoming increasingly important under climate and regulatory pressures.

At RED, we see geothermal as part of a broader shift toward integrated, resource-led infrastructure design. Data centres are no longer just buildings that house servers - they're complex energy systems that must balance performance, resilience, and sustainability over decades. Geothermal is one of the most powerful tools available to achieve that balance, but it requires commitment, expertise, and a willingness to design differently.

That’s where RED comes in - we have the expertise and vision to design data centres differently, integrating geothermal and other innovative strategies from the start. Contact us today to discuss how geothermal can shape the future of your data centre infrastructure.