Baker Hughes announced a partnership with XGS Energy to deliver engineering services for a 150‑megawatt geothermal plant in New Mexico. The plant will feed power into the Public Service Company of New Mexico’s grid and is intended to supply clean, baseload electricity for Meta’s data‑center operations in the state.
The deal marks Baker Hughes’ first major entry into geothermal generation, a sector in which the company has invested for decades through acquisitions such as GreenFire Energy. By combining its subsurface engineering, well‑construction, and power‑generation expertise with XGS Energy’s water‑ and geology‑independent technology, Baker Hughes is positioning itself to capture a growing clean‑energy niche that offers long‑cycle, low‑carbon output—an attractive proposition for data‑center operators seeking reliable, renewable power.
Baker Hughes’ 2025 financial results provide context for the significance of the project. Full‑year revenue was $27.7 billion, flat versus 2024, while adjusted EBITDA rose to $4.825 billion, a 5 % year‑over‑year increase. The Industrial & Energy Technology segment, which now accounts for nearly half of total revenue, recorded a 7 % rise in orders in Q4 2025, underscoring the momentum behind the company’s clean‑energy pivot.
CEO Lorenzo Simonelli said the company “delivered exceptional performance in 2025… IET growth more than offset the softness in the oil‑field services segment.” The statement highlights how the geothermal project fits into a broader strategy to diversify revenue streams and reduce exposure to the cyclical oil‑field market.
The announcement was well received by investors, reflecting confidence in Baker Hughes’ transition toward clean‑energy solutions and its ability to secure new business in emerging markets such as data‑center power.
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