This paper investigates the feasibility of coaxial deep borehole heat exchanger (CDBHE) applications to the University of California San Diego (UCSD) campus. By collecting different geophysical source data for various formations and well logs around the UCSD campus, a multilayered thermophysical model for the ground on the site is established. Water circulation within a closed coaxial loop system considers the geothermal energy extraction under uncertainty consideration of the unknown deeper layers heat flow gradient as coupled with the variation of pipe insulation properties, flow rates, outer pipe diameter, grout, and depths between 1 and 4 km. A finite-element framework models the Navier–Stokes fluid flow and heat transfer in the CDBHE system, validated with a field test on CDBHE from the literature. Results show that a 4-km CDBHE could produce a thermal power of 600 kW under the optimum geological conditions at the UCSD site: the water flow rate of 2.78 L/s and a ground thermal gradient of 60 ℃/km. Thermal power shares from different layers indicate that deeper formation layers contribute more to the thermal power than the shallower layers because increasing the CDBHE length from 1 to 4 km can lead to a maximum of 900% increase in thermal power and a 50% expansion in thermal plume for a CDBHE with an insulated inner pipe between the upper and lower bound heat flow bounds. An inner pipe with an insulated depth of 2 km produces only 1–6% less power than a fully insulated inner pipe for the 4-km CDBHE, and thus, a partially insulated vacuum-insulated tube (VIT)-plastic inner pipe is suggested as the best practice. Furthermore, the CDBHE thermal power increases by 5% when the grout thermal conductivity increases from 1 to 3.65 W/(K∙m), close to the formation thermal conductivity, and then maintains almost the same, and the 4-km CDBHE with flow rates of 2.78–6.94 L/s at the UCSD site can directly supply a low-temperature heating radiator system for room heating. This study suggests practical ranges for geothermal energy extraction for southern California. A CDBHE with a well-insulated inner pipe of 0.05 W/(m∙K), the thermal power of lower and upper-bound heat flow cases can vary by 60% from the mean. Finally, water as the working fluid is more efficient than CO2, doubling CDBHE's thermal power. The effects of the investigated factors provide guidelines for future geothermal resource exploitation in southern California.