XGS Energy Inks Strategic Partnership with Vallourec to Fuel New Mexico Geothermal Expansion
January 30, 2026
In a significant move to secure the supply chain for next-generation clean energy, XGS Energy, an enhanced geothermal systems developer backed by Meta, has entered a strategic partnership with global energy infrastructure leader Vallourec. The agreement is pivotal for advancing a major 150-megawatt geothermal project in New Mexico, which is central to powering Meta's growing data center operations with carbon-free electricity. The partnership, announced this week, will see Vallourec supply specialized tubular products and engineering expertise critical to XGS's proprietary geothermal technology. This supply agreement directly supports the construction of XGS's first commercial-scale project, a 150MW facility tied to a power purchase agreement with Meta signed last year. Construction is slated to begin this year, with the completed plant feeding electricity into the Public Service Company of New Mexico (PNM) grid to serve Meta's local data centers. The scale of the undertaking is substantial. XGS CEO Josh Prueher noted that the company's near-term projects in New Mexico and California are projected to make it "one of the largest consumers of tubular goods in the world in 2027 and 2028." He emphasized that "securing long-term supply of best-in-class equipment and technical support from our partners at Vallourec is absolutely critical to meeting our data center customers’ demand, on time and on budget." For Vallourec, this deal represents a strategic expansion within its New Energies portfolio. The company's high-temperature tubular solutions are engineered to minimize thermal losses and enhance system reliability in demanding geothermal applications. Philippe Guillemot, CEO of Vallourec, stated, "Our collaboration with XGS Energy exemplifies Vallourec’s commitment to the energy transformation and the strategic importance of geothermal within our New Energies portfolio. By combining our tubular expertise with XGS’s innovative technology, we are enabling meaningful progress toward decarbonizing the energy sector." The development underscores a broader industry trend as hyperscale data center operators, facing soaring energy demands from artificial intelligence, aggressively pursue firm, clean power sources. XGS's technology, which uses a sealed "pipe-within-a-pipe" system that operates independently of groundwater, aims to unlock geothermal potential in regions previously considered unsuitable. This deal with a major industrial supplier marks a crucial step in de-risking and scaling this innovative approach to provide reliable, 24/7 renewable power for the digital infrastructure sector. Source: datacenterdynamics
