Podcast Summary: Sage Geosystems CEO on the Promise of Geothermal Energy

Podcast: Bloomberg Businessweek
Hosts: Carol Massar & Tim Stenovec
Guest: Cindy Taft, CEO of Sage Geosystems
Air Date: February 12, 2026

Episode Overview

This episode explores the potential of next-generation geothermal energy, particularly as a solution for growing power demands driven by artificial intelligence and data centers. Hosts Carol Massar and Tim Stenovec interview Cindy Taft, CEO of Sage Geosystems, a company innovating in geothermal technologies by leveraging oil and gas expertise. The conversation covers the distinction between conventional and next-gen geothermal, the resource potential, industry partnerships (notably with Meta), regulatory environment, and economic feasibility.

Key Discussion Points & Insights

1. Introduction to Sage Geosystems & Next-Gen Geothermal

• Cindy Taft shares her oil and gas background and how Sage uses that expertise for geothermal innovation.

• Sage was founded five years ago by industry veterans aiming to advance "next generation geothermal."

  "We're using that knowledge of the subsurface and of our oil and gas background to advance what we're calling next generation geothermal."
  — Cindy Taft (03:37)

2. Conventional vs. Next-Gen Geothermal Explained

• Most people envision geysers, hot springs, or volcanically active areas as geothermal’s limits—what’s called “conventional geothermal.”

• Conventional geothermal requires rare geology and only represents about 2% of global potential.

• Next-gen geothermal, like Sage's approach, targets “hot, dry rock.” This dramatically increases viable geothermal territory:

  "Instead of the 2%, you're talking about 50 or 60% of the geothermal around the world."
  — Cindy Taft (05:21)

• Certain regions, particularly where hot rock is deep (e.g., the eastern US), are less practical due to drilling costs.

3. Partnering with Data Centers: The Meta Deal

• Industry giants like Meta, Google, and Microsoft are turning to geothermal to meet surging AI-driven power needs.

• Sage has a virtual Power Purchase Agreement (PPA) with Meta: geothermal power is generated near data centers and placed on the same grid.

  "That gives us flexibility on location... it's still a virtual PPA."
  — Cindy Taft (06:40)

• The resource opportunity is massive:

  "If you can expand it to this hot, dry rock, you're talking about between 5 and 7 terawatts...in the lower 48 US only."
  — Cindy Taft (07:28)

4. Regulatory and Policy Outlook

• Geothermal energy enjoys bipartisan support in the US, with strong recent momentum.

  "Geothermal has always been supported by both sides of the aisle... you've seen geothermal in a couple of the executive orders. It's actually very well supported."
  — Cindy Taft (08:14)

5. Industry Challenges & Risks

a. Capital Costs & Timelines

• Geothermal projects are capital-intensive and have long lead times, similar to other infrastructure projects.

  "Upfront capital costs are large... in an infrastructure project, it's going to be two or three years until you know that that is successful."
  — Cindy Taft (09:23)

b. Seismic Risk (Earthquakes)

• Concerns stem from potential for tremors caused by subsurface fluid injection, as seen in oil/gas operations.

• Sage mitigates this risk by alternating injection/extraction cycles and avoiding volume buildup.

  "We're putting water into that fracture, but then we're taking it out...the risk, at least for the way we operate...is a lot lower than what you're seeing in the oil and gas industry."
  — Cindy Taft (10:25)

6. Water Usage & Environmental Impact

• Water use is significantly lower than traditional coal or combined-cycle gas plants due to a closed-loop system.

  "The water needed for our operations is less than a coal plant, it's less than combined cycle natural gas... losses are, what we've measured is less than 2%."
  — Cindy Taft (11:30)

7. Cost Competitiveness & Future Outlook

• Currently, next-gen geothermal is at a similar point as wind and solar 15 years ago—costs are higher but expected to drop with scale.

  "Right now, 10 to 12 cents a kilowatt hour. If you're above scale, that can be driven down to 6 to 7 cents a kilowatt hour at scale."
  — Cindy Taft (12:45)

Notable Quotes & Memorable Moments

• "I love talking about next generation geothermal." — Cindy Taft (03:37)
• "Instead of the 2%, you're talking about 50 or 60% of the geothermal around the world." — Cindy Taft (05:21)
• "That gives us flexibility on location... it's still a virtual PPA." — Cindy Taft (06:40)
• "If you can expand it to this hot, dry rock, you're talking about between 5 and 7 terawatts...in the lower 48 US only." — Cindy Taft (07:28)
• "Geothermal has always been supported by both sides of the aisle." — Cindy Taft (08:14)
• "The water needed for our operations is less than a coal plant... losses are less than 2%." — Cindy Taft (11:30)
• "We are where wind and solar were 15 years ago." — Cindy Taft (12:45)

Important Timestamps

• 02:26 — Episode opens with energy context & Sage Geosystems intro
• 03:37 — Cindy Taft describes next-gen geothermal and Sage’s founding
• 05:21 — Breakdown of geothermal resource potential
• 06:32 — Discussion of Sage’s partnership with Meta and virtual PPAs
• 07:28 — Assessment of geothermal resource size (US and global)
• 08:14 — Policy and regulatory momentum for geothermal
• 09:23 — Capital cost, development timelines, seismic risk explained
• 11:30 — Water usage and environmental impact
• 12:45 — Cost competitiveness and the road ahead

Summary Takeaways

Sage Geosystems, led by oil and gas veterans, is at the forefront of next-generation geothermal energy, promising a dramatic expansion of geothermal’s reach by tapping hot, dry rock. With supportive policy, interest from major tech firms, and declining costs with scale, next-gen geothermal is poised to join wind and solar as a major player in decarbonizing the energy grid—particularly as AI and data demand drive the need for reliable, round-the-clock clean power.