New Mexico
New Mexico Is Poised to be a Geothermal Leader
New Mexico’s geothermal industry is ready to take off. With a nation-leading oil and gas industry, 163 gigawatts of untapped potential, a strong and growing set of policies, and the state’s only utility-scale plant already breaking records, it’s set to become a hub for the next generation of geothermal power.
Why New Mexico
Why New Mexico Matters for Geothermal
New Mexico combines the nation’s second-largest oil and gas industry—with roughly 15,000 workers in oil and gas extraction and mining support activities—with 163 gigawatts of untapped geothermal potential.
The state’s only utility-scale plant, Lightning Dock, was recently repowered to full 15 MW capacity by Zanskar using a single new well, now considered the most productive pumped geothermal well in the U.S., and Meta has signed on with XGS Energy to develop a 150 MW geothermal project to power its New Mexico data center operations.
WIth InnerSpace Action leading the way New Mexico has passed legislation in 2025 and 2026 that creates strong policy incentives for the state’s growing industry.
Featured State Report
The Future of Geothermal in New Mexico
Published June 12, 2025 by Project InnerSpace in collaboration with New Mexico Tech and the New Mexico Bureau of Geology and Mineral Resources. Identifies over 163 GW of untapped geothermal potential,more than 15 times the state’s 2023 installed capacity, and lays out 15 policy recommendations to unlock it, spanning regulatory certainty, incentives, and workforce preparation.
Recent Policy Wins
2026
An Additional $10 Million Allocated for Geothermal Projects
The General Appropriation Act of 2026 (HB 2) includes $10 million for geothermal project funding, alongside broader clean energy and workforce development appropriations.
2026
Bipartisan Support for Geothermal Incentives
Bipartisan momentum to expand NM’s geothermal tax credits is building: HB62, sponsored in 2026 by Democratic Rep. Patricia Roybal Caballero and Republican Sen. Pat Woods and Rep. Mark Murphy passed committee with a favorable recommendation before the session ended.
2025
$10 Million Allocated
The geothermal projects development fund, created in 2024 and administered by the Energy, Minerals and Natural Resources Department, provides up to $250,000 for feasibility studies; in 2025, HB289 to expand the fund passed the House and was added to that year’s budget.
2025
Meta and XGS Energy Announce 150 MW Geothermal Project
Meta signs a two-phase agreement with XGS Energy to develop a 150 MW geothermal power project supporting its New Mexico data center operations, timed almost simultaneously with the release of “The Future of Geothermal in New Mexico”.
2025
“The Future of Geothermal in New Mexico” Published
Project InnerSpace, New Mexico Tech, and the New Mexico Bureau of Geology and Mineral Resources release the report identifying 163 GW of untapped potential and 15 policy recommendations.
2025
Lightning Dock Repowered to Full Capacity
Zanskar brings the plant back to its full 15 MW capacity with a single newly drilled well, less than a year after acquiring the previously underperforming site.
2025
HB289 Expands Geothermal Projects Development Fund
The New Mexico House passes HB289, expanding grant eligibility and appropriating $20 million to the Geothermal Projects Development Fund for FY2026.
2025
State Land Office Proposes New Geothermal Leasing Rule
The New Mexico State Land Office holds a public rulemaking hearing on a modernized geothermal leasing rule (19.2.7 NMAC).
2024
Zanskar Acquires Lightning Dock
Zanskar Geothermal & Minerals acquires the Lightning Dock geothermal power plant from Cyrq Energy, setting up the site’s turnaround.