An induced groundwater flow closed loop geothermal system provides safety associated with closed loop geothermal systems (e.g., no mixing of surface water, closed system fluid, and groundwater) and efficiency associated with open loop geothermal systems (e.g., increased heat transfer provided by groundwater flow). A heat exchanger connected to an external system is located in a hole in a geological formation. The hole has a depth below where groundwater is located. A fluid from the external system is routed through the heat exchanger. A pump is utilized to induce groundwater flow from the geological formation, across the heat exchanger and back to the geological formation to enable thermal transfer between the fluid and the groundwater and the groundwater and the geological formation. A casing may be located in the hole to provide structural support and grouting materials may be used to fill space around the casing enabling a groundwater flow path.