# Mazama Energy Secures $135M for Super-Hot-Rock Geothermal Expansion Startup aims to revolutionize geothermal energy with deeper, hotter wells for AI data centers. - **Source:** [TechCrunch](https://techcrunch.com) - **Published:** 2026-09-18 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/f6fb9650-6746-4ac1-9f53-e28ab136ed14 ## Series B funding success Mazama Energy raised $135 million in an oversubscribed Series B round led by Centaurus Capital and Doerr Capital. The funding will accelerate development of horizontal wells in super-hot rocks, targeting depths of 15,000 feet. Existing investors Khosla Ventures and Gates Frontier participated, alongside new backers including Shell Ventures. This capital injection follows a year after Vinod Khosla's initial investment, when potential output estimates were half current projections. ## Breakthrough well technology Mazama's wells reach 750°F (400°C) temperatures at 15,000-foot depths, creating supercritical fluid that's neither liquid nor gas. This state allows 10x more energy absorption than traditional steam, enabling 15MW per well. The company achieved 10,000-foot drilling in just 15 days, demonstrating rapid advancement in enhanced geothermal systems. Their Oregon site's potential output jumped from 5GW to 10GW in one year, showcasing the technology's scalability. ## AI data center solution Enhanced geothermal is emerging as a dark horse candidate to power energy-intensive AI data centers. While competitors focus on natural gas, Mazama's technology offers constant baseload power without emissions. The startup claims its first Oregon site alone could generate 200MW by 2030. With AI's exponential power demands, geothermal provides a renewable alternative to intermittent solar/wind solutions currently straining grids worldwide. ## Global energy potential University of Twente research suggests tapping just 1% of global super-hot rock resources could yield over 63 terawatts - enough to power civilization multiple times over. Mazama's technology makes previously inaccessible depths economically viable. The company has already secured land for a second development site, indicating confidence in scaling the technology beyond initial Oregon operations. ## Industry validation Strategic investments from ConocoPhillips and Shell Ventures signal oil majors' interest in geothermal as transition technology. Mazama's oversubscribed round reflects strong market confidence in enhanced geothermal systems (EGS). The participation of traditional energy players alongside tech-focused VCs like Khosla demonstrates cross-industry recognition of EGS's potential to address both climate and energy security concerns. ## Competitive advantages Mazama's supercritical fluid technology offers three key benefits: higher energy density per well, consistent output unaffected by weather, and smaller surface footprint than solar/wind farms. These advantages make it particularly suitable for powering data center clusters. The company's rapid drilling progress (15,000 feet in weeks) also suggests potential cost reductions through operational efficiencies as the technology matures. ## Regulatory tailwinds The Inflation Reduction Act's geothermal tax credits and Department of Energy grants create favorable conditions for EGS development. Mazama's Oregon site benefits from state-level renewable energy mandates targeting 100% clean electricity by 2040. These policies help mitigate the high upfront costs of geothermal development while ensuring long-term demand for the startup's clean baseload power. ## Future roadmap Mazama plans to begin electricity generation in 2027 at its Oregon site, with full 200MW capacity targeted for 2030. The company's technology roadmap includes further efficiency gains through advanced materials capable of withstanding even higher temperatures. Success could position geothermal as the missing piece in decarbonizing industrial heat and powering next-gen computing infrastructure simultaneously. ## Sources covering this story - https://techcrunch.com/2026/09/17/khosla-backed-mazama-energy-just-raised-135m-to-drill-deeper-into-super-hot-rock-geothermal/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._