Geothermal is too expensive, but Dig Energy’s impossibly small drill rig might fix that

Dig Energy, a startup emerging from stealth after five years, has developed a compact water-jet drilling rig aimed at drastically reducing the upfront costs of geothermal heating and cooling systems. Traditional geothermal installations are expensive primarily due to costly drilling, limiting geothermal adoption to just 1% of U.S. building installations despite its low operating costs and significant energy savings potential. Dig Energy’s rig promises to cut drilling costs by up to 80% by using water jets instead of conventional cutting bits, enabling smaller, more precise boreholes that can be placed closer together. This innovation could make geothermal a more viable alternative to fossil fuel HVAC systems, which account for about a third of U.S. energy use and up to 40% in data centers. The company has raised $5 million in seed funding led by Azolla Ventures and Avila VC to advance its technology toward commercial pilots. Unlike traditional geothermal drill rigs, which are large, truck-mounted, and difficult to deploy in tight urban or residential spaces, Dig’s