AI and Capital Spark a New Geothermal Push in the US

Once niche, US geothermal is drawing big money as AI and advanced drilling aim to unlock always-on clean power by 2030

9 Feb 2026

For decades, geothermal power has hovered at the edge of America’s clean energy conversation. Reliable, carbon-free, and largely invisible, it never quite matched the scale or speed of wind and solar. That may be starting to change.

A fresh wave of investment is flowing into deep geothermal projects, driven by new technology and rising demand for round-the-clock electricity. The latest signal came in January, when startup Zanskar raised $115 million in a funding round led by Spring Lane Capital. The money will back exploration and early development across the western United States, where heat runs hottest beneath the surface.

What sets Zanskar apart is its bet on data. Drilling deep wells is expensive, and the industry’s long-standing problem has been uncertainty. Companies can drill for months and still fall short on usable heat. Zanskar uses advanced analytics and AI-driven models to narrow the odds before a drill ever touches rock. Investors see that as a way to make geothermal projects less risky and easier to finance.

The momentum goes well beyond one company. Enhanced geothermal systems, or EGS, are pulling in even larger sums. These projects borrow techniques from oil and gas drilling to reach deeper, hotter formations. Fervo Energy has raised more than $460 million to scale its EGS portfolio, a sign that investors are backing the sector as a whole rather than a single approach.

Demand is doing much of the work. Utilities, data centers, and industrial customers want clean power that does not flicker with the weather. Geothermal delivers steady output, day and night, as electricity needs climb and grid reliability grows more fragile.

The road ahead is not simple. Subsurface risk never disappears, and competition for rigs and skilled crews could slow progress. Most deep geothermal projects now in development are aiming for first power around 2030, a reminder that patience is required.

Still, the direction is clear. With AI sharpening exploration, drilling methods improving, and capital finally lining up, geothermal is edging toward the mainstream. It remains a small slice of the energy mix, but its moment may finally be approaching.