Chevron partners with Engine No. 1 and GE Vernova to develop natural gas-fired power plants for AI data centers in the U.S.
With AI’s insatiable demand for energy, co-locating power plants with data centers helps avoid straining the existing electrical grid and mitigates potential electricity price hikes.
Chevron has announced a strategic partnership with investment firm Engine No. 1 and energy technology company GE Vernova to develop natural gas-fired power plants dedicated to meeting the escalating energy demands of AI data centers across the U.S.
Power play: The collaboration aims to deliver up to four gigawatts of power by the end of 2027, enough to supply electricity to approximately 3 to 3.5 million U.S. homes. The initial phase involves deploying seven high-efficiency GE Vernova 7HA natural gas turbines, with plans to co-locate these power plants alongside data centers in the Southeast, Midwest, and Western regions of the country.
AI is straining the grid: This co-location strategy is designed to provide reliable, continuous power to data centers without burdening the existing electrical grid, thereby mitigating potential increases in electricity prices for consumers. The rapid rise of AI technologies has significantly increased the energy consumption of data centers, which can use up to 50 times more power per square foot than typical office buildings.
Energy-sapping searches: A single query on advanced AI platforms like ChatGPT can consume significantly more energy than a standard Google search. By harnessing abundant domestic natural gas, Chevron and its partners aim to ensure that the U.S. maintains its leadership in AI development while addressing these substantial energy requirements.
Political perspective: Chevron’s CEO, Mike Wirth, said in a statement the partnership’s plans aligned with the Trump administration’s national energy policies. “President Trump’s pro-American energy policies and commitment to energy and AI dominance give us the confidence to invest in projects that will create American jobs and strengthen our national security,” he said.
