Nuclear power generation stocks like OKLO (OKLO), NuScale Power Corp (SMR), and Constellation Energy Group (CEG) have been in the spotlight in 2025 due to the surge in commercial demand from data centers. Much of the attention has focused on the development of Small Modular Reactors (SMRs), which scale down nuclear power plants in a way that can potentially meet the rapid growth in electricity demand from data infrastructure. But is the market overlooking one of the oldest, cleanest, and most reliable energy sources? One that, with new technology, may be scaled even faster than SMRs. Geothermal energy could be poised for a major resurgence, and several tech and financial firms are already ahead of the curve.

Geothermal power generation follows the same basic principle as other power technologies: using a power source to move a turbine to generate electricity, heating, or cooling. Instead of uranium, solar, or wind, geothermal draws directly from the Earth’s internal heat. Companies drill deep into the Earth’s crust to locate enough heat to produce hot water or steam, which can then be harnessed to drive turbines. With advances in drilling technology, particularly from the oil and gas sector through hydraulic fracturing, we are now seeing a hybrid approach where geothermal wells can reach deeper, hotter layers of rock than ever before. Unlike nuclear power, geothermal does not rely on uranium supply chains, which remain geopolitically sensitive and dependent on countries like Russia, Kazakhstan, and Canada.

Fracking has transformed U.S. oil production over the last decade, making the United States the world’s largest oil producer. That same technique is now being repurposed to unlock geothermal potential. For example, Alphabet (GOOGL) has partnered with private firm Fervo Energy to power data centers in Nevada. Together, they are deploying a closed-loop system that leverages fracking technology to deliver 24/7 sustainable electricity without the intermittency risks that plague solar and wind power. This proof of concept demonstrates the viability of geothermal for large-scale, always-on energy production. If successful, the model could be replicated nationwide. In fact, Fervo Energy is already working on a 5,000-megawatt project in Utah designed to deliver electricity directly into the grid.

Several major companies are positioning themselves in geothermal energy. Constellation Energy (CEG) has expanded into the space through its acquisition of Calpine, a leading natural gas and geothermal power company. Berkshire Hathaway (BRK/B), through its subsidiary Berkshire Hathaway Energy, operates multiple geothermal facilities in California, demonstrating its commitment to diversifying its power portfolio. Meanwhile, Ormat Technologies (ORA) has established itself as a leader in the sector as a publicly traded company specializing in the design, manufacturing, and operation of geothermal systems worldwide.

As datacenter demand for electricity surges and geopolitical risks cloud future uranium supply chains, geothermal energy is emerging as a highly attractive alternative. Advances in fracking and drilling technology are unlocking geothermal’s scalability, offering a path to provide constant, clean, and locally sourced power. With proof-of-concept projects already online and large-scale facilities underway, the market may soon recognize geothermal as more than a niche renewable energy source. For investors, policymakers, and corporations, geothermal represents not just an overlooked energy source but a strategic opportunity in the race to secure scalable electricity quickly.

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