Sage Geosystems stores pressurized water underground in an effort to meet the energy needs of data centers. The startup has been conducting trials on machinery intended to capture earthly heat. A well's injection and release of water produced a flurry of hot, clean water that could be a dependable substitute for natural gas in the world's energy needs.
In addition to employing geothermal energy, Sage Geosystems suggests utilizing deep wells as energy storage devices, where pressured water produces electricity as needed. After more than a year of testing this idea in Starr County, the company is currently building its first commercial facility close to San Antonio. The majority of a 10-acre plot next to a coal-fired power station operated by San Miguel Electric Cooperative Inc. (SMECI) would be used for the project. According to CEO Cindy Taff, Sage intends to drill wells to store solar array electricity for use in powering a small data center that would serve as a "model home for a big data center."
At roughly 10 cents per kilowatt-hour, this geopressured geothermal system is predicted to generate 3 megawatts of electricity, which is sufficient to power over 600 households. Mid-September is when drilling is scheduled to start, and the plant is anticipated to open for business in December.
Taff and her colleagues brought their geological and drilling skills to Sage from lengthy careers in the oil and gas sector. Their first priority was to lower the cost of power, which is a significant outlay for geothermal businesses. They discovered that by injecting water under pressure and passing the pressured water through a turbine, they could recover a portion of the energy. With early testing indicating only a 1-2% loss every injection and recovery cycle, Sage seeks to reduce water losses in contrast to oil and gas fracking, which loses a significant amount of water.
After it has been validated, Sage could add up to 10 more wells to the site, increasing its capacity to 50 MW. SMECI plans to add solar panels in 2026 and is considering using energy storage to augment a coal plant's consistent supply of energy. Sage suggests that at least 70% of the electricity used for water injection be recovered.
Sage is working together with large IT companies to supply geothermal and energy storage solutions for their data centers. Grid-scale batteries are commonly used in data centers powered by solar energy, however they are usually prohibitively costly for long-term use. Taff asserts that while sage doesn't compete with lithium-ion batteries for short-duration storage, it can offer a more cost-effective solution for longer storage times.