Two months post-Fervo, XGS is weighing an IPO

A geothermal energy company called XGS Energy has hired Morgan Stanley to consider going public, following a similar move by rival Fervo Energy, which raised $1.9 billion in its Nasdaq listing in May. Both companies are part of a wave of "next-generation" geothermal developers, which use new drilling and engineering techniques to pull heat from underground rock in places that lack natural hot springs or geysers.

XGS uses a "closed-loop" system: it drills deep vertical wells, inserts steel pipes filled with water, and packs the surrounding rock with a mineral slurry that conducts heat into the pipe. Because the water stays sealed inside the pipe, the system avoids losing water underground, which matters in dry regions. The company has signed deals to supply power for a California project with local utility groups and a 150-megawatt project in New Mexico that will help power Meta's data centers. It also completed months of testing in California last year to prove the system works reliably at the depths and temperatures needed for full-scale power projects.

None of this changes anything for homeowners right now. These are utility-scale power projects, not home heating systems, and they mainly matter for how electricity gets generated for the grid, especially to meet rising demand from data centers. If XGS or other geothermal developers keep growing, it could eventually mean more clean, steady power on local grids, but that is a long-term industry shift rather than something tied to any home upgrade or rebate program.