Executive Summary

S&P Global Ratings estimates that U.S. data center power demands will grow at 12% annually until the end of 2030, potentially doubling the tech sector’s current carbon emissions, as about 60% of the new demand may need to be met by traditional sources due to constraints on renewable energy growth and the requirement for stable power. As the US looks for reliable alternatives that surpasses solar and wind power’s limitations, geothermal energy can offer a consistent, clean energy solution capable of meeting these needs. Prioritizing investments in geothermal technologies and streamlining regulatory processes is crucial for expediting deployment, significantly benefiting Gen-Z’s future by fostering both environmental, sustainability, and technological advancements. 

Background

Geothermal energy harnesses the Earth's internal heat for electricity generation and heating applications. In 2023, the United States led global geothermal production, with 3,965 Mega Watts powering over 300,000 homes. Despite being the #1 geothermal producer in the world, geothermal power constitutes less than 1% of the U.S. energy mix, underscoring substantial potential for expansion. Enhanced Geothermal Systems (EGS) could unlock this potential by enabling resource utilization beyond conventional hydrothermal sites. A report from Ameresco highlights that 81% of Gen Z view clean energy as a promising career path, reinforcing their commitment to sustainability and clean energy technologies like geothermal. With an estimated half a million new clean energy job openings projected by 2030, Gen Z is poised to step in and fill these roles, leading the charge toward a sustainable future. 

Challenges

Data centers, which support AI and other high-performance computing, are projected to account for 44% of U.S. electricity load growth by 2028, creating significant challenges for the energy sector. U.S. utility providers will need to increase annual energy generation by between 7% and 26% above 2023 levels to meet these demands. This increased energy consumption, with the burgeoning demands of IoT devices, EV infrastructure, and cryptocurrency mining, will have profound implications for Gen Z. As they become the largest consumers and future leaders in a more energy-dependent world, Gen Z is facing profound challenges and opportunities in navigating and addressing the energy needs of tomorrow. While Congress permitted the Bureau of Land Management (BLM) to use categorical exclusions to simplify the environmental analysis required for certain oil and gas exploration, geothermal projects still necessitate separate environmental reviews at each development stage under the National Environmental Protection Act (NEPA), despite being considerably cleaner than oil and gas drilling. According to a 2014 report by the National Renewable Energy Lab (NREL), a single project location could trigger six different reviews and take 7-10 years to develop. In contrast, a 2011 GAO report found that BLM field offices used categorical exclusions to expedite 6,900 oil-and-gas-related activities from fiscal years 2006 to 2008. The advancements in drilling technology, driven by "learning by doing," led to significant improvements and reduced costs in oil and gas production at the expense of environmental degradation. Applying the same approach to next-generation geothermal deployment could unlock similar innovations and optimize development with a much lower carbon footprint. With data consumption continuing to rise, ensuring accessible and sustainable energy will be crucial to balancing both economic and environmental needs for Gen Z.

Solutions

Geothermal energy is a reliable and consistent source of power, providing a steady 24/7 supply. Its high energy density, which requires less land space than other renewable sources, and extremely low carbon footprint make it a viable clean renewable energy option for technology-driven sectors. The Supercritical Geothermal Research and Development Act and the Geothermal Energy Optimization (GEO) Act are two bipartisan pieces of legislation introduced in the 118th Congress to advance research and accelerate the adoption of geothermal energy nationwide. The GEO Act aims to promote timely exploration for geothermal resources by amending the Geothermal Steam Act of 1970 and streamlining leasing and permitting processes, making it easier for companies to explore and invest in geothermal projects. Meanwhile, the Supercritical Geothermal Research and Development Act advances cutting-edge research, development, and commercialization of supercritical geothermal technologies. Given its capacity to meet growing energy demands without compromising environmental sustainability, geothermal power offers a strategic solution to addressing Gen-Z’s priorities on environmental sustainability. Expanding this sector creates numerous job opportunities in the green energy field, providing a pathway for Gen Z to engage in meaningful work that directly contributes to an increase of environmental sustainability. Additionally, as geothermal energy reduces reliance on imported energy, it fosters energy independence and economic stability, which is crucial for future generations. This shift towards cleaner, more reliable energy sources also ensures that Gen Z can thrive in an economy that prioritizes long-term sustainability and innovation.

Policy Recommendations

Geothermal energy offers a sustainable and impactful solution to the growing energy demands of today’s technology-driven world. With the potential to create thousands of new jobs, this sector is a key player in shaping the future workforce, ensuring long-term employment in an industry that promotes both economic growth and environmental well being. Investing in geothermal energy is a forward-thinking strategy that promises reliable, low-emission power and strengthens our commitment to a sustainable future. 

ZETA urges the 119th Congress to reintroduce the Geothermal Energy Optimization (GEO) Act as well as the Supercritical Geothermal Research and Development Act. These critical bills exemplify the U.S. government's commitment to advancing geothermal technologies. These initiatives focus on streamlining federal regulations, expediting exploration and development, and fostering collaboration between key agencies. Tapping into the awesome potential of geothermal energy is key to driving innovation, creating clean jobs, and ensuring a resilient and green energy infrastructure for generations to come.