Record-setting geothermal bid signals rising interest in federal leases

A federal land auction in New Mexico shows growing interest in geothermal energy as a power source for the electric grid. In June, the Bureau of Land Management sold leases on public land to companies looking to build geothermal power plants, which draw heat from underground to generate electricity. The sale brought in more than $16.5 million, the second-highest total in the agency's history, and one bidder paid a record $701 per acre for a single tract. Across the sale, average prices per acre came in far higher than a similar sale in Nevada last year, and far fewer parcels went for the minimum bid than in past years, a sign companies are competing harder for sites with good potential.

This is about utility-scale power generation, not the geothermal heat pump systems some homeowners install to heat and cool individual houses. New Mexico already has one operating geothermal power plant, and companies including Meta have announced billion-dollar geothermal projects there to supply electricity, partly to meet rising demand from data centers and other large users.

The BLM has more geothermal lease sales planned this year, including one in Utah on August 18, followed by Nevada and Idaho later in 2026. Analysts say proximity to high-voltage transmission lines is becoming a bigger factor in what companies are willing to pay for these leases. None of this changes rebates or programs available to homeowners, but it points to more geothermal power potentially feeding into local grids in the coming years.