Baker Hughes Inks 500 MW Geothermal Deal as AI Drives Electricity Demand, Reuters Says

Baker Hughes Company (NASDAQ:BKR) is included among the 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential.

Baker Hughes Inks 500 MW Geothermal Deal as AI Drives Electricity Demand, Reuters Says

Photo by Mark Kuiper on Unsplash

On June 24, Reuters reported that Baker Hughes Company (NASDAQ:BKR) signed an agreement with geothermal developer Mantle Reach Power. The deal is to deliver up to 500 megawatts of geothermal capacity in North America. The companies said the deal comes as rising electricity demand from data centers and artificial intelligence is increasing interest in reliable, around-the-clock power sources such as geothermal energy.

Under the agreement, Baker Hughes will serve as the integrated subsurface solutions provider. In addition, Mantle Reach Power will lead project development, ownership, and financing. The companies said the collaboration targets up to 500 megawatts of power over the next five years. The phased agreement covers the development, construction, and operation of geothermal projects.

Mantle Reach Power is backed by EnCap Energy Transition Fund III, part of EnCap Investments, which the companies said has raised about $47 billion across 25 institutional funds.

Baker Hughes Company (NASDAQ:BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide.

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