Beneath the Surface, Geothermal Power Surges Ahead

Billions in industry funding and advanced drilling are pushing geothermal toward reliable, nationwide clean power at commercial scale

30 Jan 2026

Geothermal power in the US is entering a new phase as improved drilling technology and growing investment lift the sector beyond its traditional regional base and closer to commercial scale.

Installed geothermal capacity is approaching 4 gigawatts, according to industry estimates, with more than 1.6 gigawatts of additional projects already backed by long-term power purchase agreements. The shift is being driven less by volume alone than by changes in how and where projects can be developed. New geothermal systems are designed to reach deeper underground heat, extending potential development beyond long-established sites in the western states.

Capital has followed these technical advances. Funding for next-generation geothermal is now estimated to run into the billions of dollars, supported by a series of large investment rounds in recent years. Fervo Energy, a US-based developer, raised $462mn in a Series E financing, highlighting investor expectations that advanced geothermal is moving from pilot projects to wider deployment.

Companies such as Fervo have adapted drilling techniques from the oil and gas sector, aiming to reduce exploration risk and shorten development timelines while delivering continuous power output. The approach has helped position geothermal as a source of firm clean electricity, capable of operating around the clock.

Federal agencies have begun to reflect this momentum in national assessments, describing geothermal as increasingly predictable and financeable, and better suited to a power system focused on reliability. Established operators, including Ormat Technologies, are also investing in technology upgrades to improve flexibility and grid performance.

Beyond power generation, geothermal heat pumps are gaining attention for use in buildings and district energy systems, offering a way to cut emissions from heating and cooling in cities, campuses and commercial sites.

The sector still faces obstacles. Drilling remains capital intensive, and permitting rules have yet to fully adjust to newer geothermal methods. Industry participants argue, however, that policy support, continued innovation and sustained investment will gradually lower these barriers.

As utilities and large energy users seek dependable clean power to balance wind and solar, geothermal is moving from incremental growth towards a more central role in the US energy transition.