North America’s geothermal sector is entering a major growth phase, driven by technology advances, new funding and fast-rising demand for reliable, low-carbon electricity, as well as to boost energy security.
According to recent reports from the US Department of Energy (DoE) and the National Laboratory of the Rockies (NLR), the United States currently has around 4 GW of installed geothermal capacity, primarily concentrated in California and other western states.
However, while it remains a relatively small contributor to the overall energy mix, next-generation technologies such as Enhanced Geothermal Systems (EGS), growing commercial investment and supportive policy measures are accelerating development and expanding the sector’s long-term potential.
New report reviews developments
Geothermal Transition Network has issued a new report entitled 2026 Geothermal Case Study Review: North America which:
• Examines the evolving policy and market landscape across the USA and Canada, highlighting the growing role of geothermal in supporting energy security, decarbonisation and grid resilience.
• Explores the rapid development of emerging technologies, including EGS, Advanced Geothermal Systems (AGS) and other innovative solutions that could expand the geographical reach and commercial viability of geothermal energy.
• Assesses the increasing participation of major technology companies, government agencies and institutional investors, with growing demand from data centres, military installations and corporate power purchasers helping to drive new projects.
• Discusses the financing landscape, including the emergence of large-scale project finance transactions and increasing lender confidence as geothermal moves towards becoming an established infrastructure asset class.
• Reviews the competitive landscape, profiling leading developers, technology providers, oilfield service companies and equipment suppliers supporting the industry's expansion across North America.
• Highlights Canada’s geothermal ambitions, examining the country's substantial resource potential alongside the policy, regulatory and investment challenges that must be addressed to accelerate commercial deployment.
• Identifies emerging opportunities beyond electricity generation, including hybrid renewable systems, critical mineral extraction from geothermal brines, flexible grid services and energy solutions for rapidly expanding AI-driven data centres.
The report concludes that geothermal energy is steadily transitioning from an emerging technology to a commercially scalable source of firm, always-on clean power.
While high drilling costs, resource uncertainty and permitting challenges remain significant barriers, continued technological innovation, supportive policy frameworks and expanding private investment are expected to strengthen the sector’s outlook.
If these structural challenges can be addressed, North America is well positioned to establish a robust geothermal industry capable of delivering secure, reliable and low-carbon energy for decades to come.
Download the report
The report can be downloaded here