North America is helping to drive momentum in the global geothermal sector, with the region seeing increased activity relative to other parts of the globe in recent times.
While the number of next-generation geothermal project announcements plateaued elsewhere, North America continued to increase its global share – acting as a key driver of pipeline expansion, according to a recent Wood Mackenzie report.
A total of 260 MW of new Advanced Geothermal Systems (AGS) power capacity was announced in the the USA during Q2 2025, raising un-risked AGS capacity to 20% of the overall US project pipeline — up from just 2% in the same period last year, the report noted.
Next-generation geothermal technologies, especially, are creating a new buzz of excitement around the sector, it noted.
Moreover, the growth of the data centre industry, and collaborations with geothermal energy partners, continue to boost and strengthen the next-gen project pipeline.
AGS comprises a closed-loop system that circulates fluid through the subsurface while avoiding direct contact with rock or groundwater. Unlike conventional geothermal, it can be used almost anywhere.
Other next-gen technologies include enhanced geothermal systems (EGS), whereby fluid is injected into hot rocks to increase permeability; Geopressured Geothermal Systems (GGS), which extract energy from high-pressure, high-temperature reservoirs of water containing dissolved methane; and superhot rock, which involves harnessing geothermal energy from extremely hot, dry rocks found deep underground.
According to Wood Mackenzie, US policy momentum and funding is also accelerating.
“The US government’s backing for direct lithium extraction (DLE) project ATLiS, with its co-located geothermal project, accounted for most public funding of geothermal in North America in Q1 – and a significant proportion of global funding,” the energy consultancy noted in an opinion piece.
Taking AtLiS out of the equation, total public funding for geothermal globally increased by 57% between Q1 and Q2 2025, to hit US$400mn – helped by strategic reforms, incentives and international alliances, it added.
The focus was on core geothermal projects covering conventional and next-generation technologies.
Investor confidence also remains strong, Wood Mackenzie added, with next-generation startups including Fervo, XGS, Eavor and Green Therma raising a total of US$319mn during Q2.
That sum represents 14% of all money invested in next-gen geothermal since 2019, and brings the total amount secured between 2019 and 2025 to a healthy US$2.2bn.