With the increasing attention to clean and economical energy resources, geothermal energy and enhanced geothermal systems (EGS) have gained much importance in recent years. For the efficient development of deep geothermal reservoirs, it is crucial to understand the mechanical behavior of reservoir rock and its interaction with injected fluid under high-temperature and high confining pressure environments for employing hydraulic stimulation technologies. In the present study, we develop a novel numerical scheme based on the distinct element method (DEM) to simulate the failure behavior of rock by considering the influence of thermal stress cracks and high confining pressure for EGS. The proposed methodology is validated by comparing uniaxial compression tests at various temperatures and biaxial compression tests at different confining pressures with laboratory experimental results. The numerical results indicate a good agreement in terms of failure models and stress-strain curves with those of laboratory experiments. We then apply the developed scheme to the hydraulic fracturing simulations under various temperatures, confining pressures, and injection fluid conditions. Based on our numerical results, the number of hydraulic cracks is proportional to the temperature. At a high-temperature and low confining pressure environment, a complex crack network with large crack width can be observed, whereas the generation of the micro-cracks is suppressed in high confining pressure conditions. In addition, high-viscosity injection fluid tends to induce more hydraulic cracks. Since the crack network in the geothermal reservoir is an essential factor for the efficient production of geothermal energy, the combination of the above factors should be considered in hydraulic fracturing treatment in EGS.