Drilling down on geothermal capacity

US energy demand is expected to climb in the next decade, driven in part by data center load growth and electrification. Senior Partner Adam Barth and colleagues find that next-generation geothermal energy, when deployed as a grid resource competing with other technologies in the United States, has the capacity to increase steadily from 1 gigawatt this year to more than 80 gigawatts by 2050. Under conditions in which sustainability becomes a global priority, geothermal capacity could reach close to 110 gigawatts.

The total market potential for enhanced geothermal systems in the United States by 2050 is about 85 gigawatts of installed capacity.

Image description.

A line chart illustrates the projected installed geothermal capacity in the US from 2025 to 2050. The chart displays three lines representing different scenarios: the McKinsey Global Energy Perspective (GEP) continued-momentum scenario, the McKinsey GEP sustainable-transformation scenario, and the US Department of Energy estimate. The McKinsey GEP continued-momentum scenario projects a steady increase in installed capacity from less than 1 gigawatt in 2025 to around 85 gigawatts by 2045, before slightly decreasing to approximately 80 gigawatts by 2050. In contrast, the McKinsey GEP sustainable-transformation scenario and the US Department of Energy estimate both show a continuous upward trend, with the former reaching around 110 gigawatts and the latter reaching around 100 gigawatts by 2050. The chart also includes a secondary axis showing the share of US capacity, which is expected to reach 2–3% by 2050.

Source: Pathways to Commercial Liftoff: Geothermal heating and cooling, US Department of Energy, January 2025; McKinsey analysis.

Note: This image description was completed with the assistance of Writer, a gen AI tool.

End of image description.

To read the article, see “Is geothermal energy ready to make its mark in the US power mix?,” July 17, 2025.