--- title: Vema predicts cheap hydrogen could change where data... description: Vema Hydrogen has developed a method to produce hydrogen by drilling wells into iron-rich rock formations and stimulating hydrogen release underground. The... canonical: https://daily.dev/posts/vema-predicts-cheap-hydrogen-could-change-where-data-centers-are-built-ytg7hq5pe twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Vema predicts cheap hydrogen could change where data centers are built | daily.dev og:description: Vema Hydrogen has developed a method to produce hydrogen by drilling wells into iron-rich rock formations and stimulating hydrogen release underground. The... og:url: https://daily.dev/posts/vema-predicts-cheap-hydrogen-could-change-where-data-centers-are-built-ytg7hq5pe og:image: https://api.daily.dev/og/posts/yTg7Hq5pE.png og:image:alt: Vema predicts cheap hydrogen could change where data centers are built og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Vema predicts cheap hydrogen could change where data centers are built **[TechCrunch](https://daily.dev/sources/tc)** · 4 min read · 0 upvotes · 0 comments ## Summary Vema Hydrogen has developed a method to produce hydrogen by drilling wells into iron-rich rock formations and stimulating hydrogen release underground. The company completed a pilot project in Quebec and signed a deal to supply California data centers. Vema expects to produce hydrogen for under $1 per kilogram initially, with costs potentially dropping below 50 cents per kilogram once techniques are refined. This would make it cheaper than current methods like steam methane reformation (70 cents to $1.60/kg) or electrolysis. The widespread distribution of suitable rock formations, particularly ophiolite in California, could enable hydrogen production near data centers, potentially reshaping where these facilities are built to access cheap, clean baseline power. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [The next big thing in hydrogen could be underground](https://daily.dev/posts/the-next-big-thing-in-hydrogen-could-be-underground-w5des9wmf) · MIT Technology Review · 0 upvotes · 0 comments - [Europe’s AI Drive Outpaces a Fragile Chip Supply Chain](https://daily.dev/posts/europe-s-ai-drive-outpaces-a-fragile-chip-supply-chain-puagdi7ec) · IEEE Spectrum · 0 upvotes · 0 comments - [Gravitational Wave Detectors Turn to Quantum Mechanics](https://daily.dev/posts/gravitational-wave-detectors-turn-to-quantum-mechanics-z3qx4qafc) · IEEE Spectrum · 0 upvotes · 0 comments --- Tags: [#infrastructure](https://daily.dev/tags/infrastructure), [#clean-energy](https://daily.dev/tags/clean-energy) [View this post on daily.dev](https://daily.dev/posts/vema-predicts-cheap-hydrogen-could-change-where-data-centers-are-built-ytg7hq5pe) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Vema predicts cheap hydrogen could change where data centers are built","url":"https://daily.dev/posts/vema-predicts-cheap-hydrogen-could-change-where-data-centers-are-built-ytg7hq5pe","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/vema-predicts-cheap-hydrogen-could-change-where-data-centers-are-built-ytg7hq5pe"},"datePublished":"2026-02-03T12:20:56.918Z","dateModified":"2026-02-03T12:21:23.227Z","description":"Vema Hydrogen has developed a method to produce hydrogen by drilling wells into iron-rich rock formations and stimulating hydrogen release underground. 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