UK intellectual property investment firm Tekcapital has formed a portfolio company to acquire, develop, and commercialize geothermal-powered hyperscale data centers for the AI sector.

The portfolio company, dubbed Vesari, will seek to support developments that co-locate hyperscale AI compute directly with geothermal power generation in a fully integrated, behind-the-meter configuration.

According to the company, the model will be designed to operate independently of traditional grid infrastructure and use low Earth orbit (“LEO”) satellite connectivity in place of conventional terrestrial fiber networks.

Vesari is expected to hold a portfolio of eleven patent applications. The company’s prototype model envisions a closed-loop system integrating power generation, cooling, compute orchestration, and commercial monetization into a single operating framework.

The company claims that the principal advantage of the model lies in the interaction of these integrated systems, forming a reinforcing feedback loop among power, cooling, compute, pricing, and power utilization, and is expected to enhance energy efficiency, compute throughput, and revenue quality.

Tekcapital’s wholly owned subsidiary, Tekcapital Europe, will hold a 51 percent stake in the company, with Dr. Gross, executive chairman of Tekcapital, holding the remaining 49 percent. It is expected that the majority of the funding for Vesari’s future operations will be obtained independently of Tekcapital.

Commenting on the launch, Louis Castro, director of Tekcapital, said: “We are delighted to announce the formation of Vesari, which has been created to address what we believe is becoming the defining constraint on the AI economy, not semiconductors, but power. By co-locating AI compute directly with geothermal power generation, behind the meter, and connecting it via LEO satellites, we believe that if successful, Vesari can enable more efficient, 24/7 carbon-free compute capacity. This resource will largely be insulated from grid constraints, power price volatility, and should not impact the cost of electricity to individuals, communities, and municipalities.”

The launch reflects a growing trend within the data center sector, with more and more firms looking towards geothermal as a potential key source of power. Several of the world’s biggest data center firms have already signed agreements to offtake power from geothermal sources. This includes Google, Meta (x2), Microsoft, and Amazon.