Geothermal energy is now getting a major upgrade with the rise of superhot geothermal technology, according to CNBC. Unlike traditional geothermal, this method drills much deeper to reach rocks that are so hot they can produce five to ten times more power per well. One of the leaders in this space is Quaise Energy, which uses an electromagnetic beam that vaporizes rock to reach depths of up to 12 miles, where temperatures can soar past 500°C (930°F). This level of energy density could be crucial as modern industries, particularly artificial intelligence and data centers, require massive amounts of constant power.
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Interestingly, Quaise’s technology is now moving toward commercial scale. The company recently partnered with oil and gas firm Nabors Industries (NBR) to demonstrate that while drilling this deep is costlier, the 10x energy output ultimately offsets expenses. As a result, plans are already underway to build the world’s first superhot geothermal power plant near Bend, Oregon, by 2028. It is worth noting that this project arrives at a crucial time.
In fact, AI training models and cloud computing platforms from tech giants like Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) are driving energy demand to record highs, thereby creating pressure to find new energy sources that are sustainable. This has allowed Quaise to raise $103 million from investors, while receiving strong support from the U.S. Department of Energy. Indeed, Energy Secretary Chris Wright highlighted that it has the potential to both power AI growth and reduce electricity costs. He also noted that it is included in President Trump’s National Energy Emergency executive order.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the AI stocks mentioned above, analysts think that AMZN stock has the most room to run. In fact, AMZN’s average price target of $259.39 per share implies more than 12% upside potential. On the other hand, analysts expect the least from GOOGL stock, as its average price target of $214.42 equates to a gain of 9%.
