The Arizona Governor’s Office of Resiliency has announced a US$1mn investment in the Arizona Geological Survey (AZGS) to enhance knowledge of the state’s geothermal potential.
The new funding is part of a range of actions by Arizona’s Governor Katie Hobbs to accelerate the state’s geothermal development and expand its economic and energy future as electricity demand grows.
“Arizona is at a crucial crossroads in its energy story, and we have the key resources needed to be a leader in geothermal energy production,” said Hobbs.
“I am taking the steps to make that happen by investing in the Arizona Geological Survey, proposing funding for new geothermal research in my executive budget, and convening a geothermal working group.”
It represents the next step in Hobbs’ focus on building the future of energy in Arizona.
Earlier this month, Hobbs released her FY2027 executive budget proposal, which includes US$1.5mn for geothermal research to expand knowledge of Arizona’s subsurface.
Additionally, a geothermal working group was also assembled within her Arizona Energy Promise Taskforce to catalyse the deployment of next-generation geothermal technologies across Arizona.
“Arizona is ready to leverage its status as a global leader in technology industries and a strong foundation in subsurface industries like mining,” said Hobbs.
“Geothermal will be a future-defining industry for Arizona, lowering energy costs and strengthening our grid. We are open for business.”
AZGS brings more than 45 years of experience in geothermal research, with expertise in subsurface characterisation and statewide data development, including leading the US Department of Energy’s (DOE) US$23mn project to create a National Geothermal Data System, according to Brian F. Gootee, Senior Research Geologist and Energy Geology Group Chief at AZGS.
“With this rich legacy of geothermal work, AZGS remains committed to advancing Arizona’s geothermal development through rigorous science and close collaboration with the Governor’s Office.”
Arizona also recently joined the DOE and the National Association of State Energy Officials’ Geothermal Power Accelerator, a new collaboration among 13 states to rapidly expand geothermal power development in partnership with the private sector.
According to the DOE and the National Laboratory of the Rockies, next-generation geothermal energy potential in the USA is at least 26.5 terawatts, with a large concentration of resources in the Mountain West.
A 2025 Princeton University study assesses that geothermal energy could meet 20% of US electricity demand by 2050.Across various scenarios modelled by Princeton, the deployment of enhanced geothermal within the energy mix reduced wholesale electricity costs by 22–55%.
“An all-of-the-above approach to electric generation is essential to maintaining grid reliability while keeping rates just and reasonable for Arizona’s families and businesses,” said Arizona Corporation Commission Chair Nick Myers.
“Technological advancements in geothermal energy show significant promise in Arizona and could become a valuable addition to our energy mix. If these technologies prove to be cost-effective, ratepayers stand to benefit from Arizona’s untapped geothermal resources.”
Arizona utilities estimate significant growing energy needs over the next 15 years, with some utilities projecting a 40% increase in peak demand.
Electricity demand in Arizona is rising fast due to several factors, including the state’s expanding population as well as economic growth.