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Chevron to Power AI Data Centers with U.S. Natural Gas

January 29, 2025
Prince Agyapongby Prince Agyapong
in Extractives/Energy
0
U.S. Natural Gas

U.S. Natural Gas

Chevron and investment firm Engine No. 1 have announced a strategic partnership to develop large-scale power solutions for U.S.-based data centers, leveraging the country’s abundant natural gas resources.

The initiative, supported by GE Vernova, aims to establish the first multi-gigawatt power plant co-located with a data center during President Donald Trump’s second term.

The companies’ announcement aligns with early actions by the Trump Administration to promote energy investment and technological leadership, positioning the U.S. as a dominant player in artificial intelligence (AI) development.

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The rapid rise of AI, cloud computing, and data-intensive applications has intensified the need for cost-effective, scalable power solutions that do not strain the existing energy grid. Chevron Chairman and CEO Mike Wirth emphasized the strategic importance of the project

“We are proud to play our part in bringing to fruition President Trump’s vision for a new American golden age, powered by our enormous energy resources and unrivaled workforce.

“His 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.”

Mike Wirth, Chevron Chairman and CEO

The joint development, referred to as “power foundries,” will deploy seven U.S.-manufactured GE Vernova 7HA natural gas turbines under a slot reservation agreement.

These power facilities will be built on an accelerated timeline and are expected to serve data centers in the Southeast, Midwest, and West regions of the United States.

Unlike traditional power generation projects, these facilities will not initially connect to the existing transmission grid, reducing the risk of increased electricity prices for consumers while ensuring a stable energy supply for AI-driven computing.

The partnership seeks to address the growing energy demands of AI and cloud computing, supporting domestic data center operations and strengthening national competitiveness in AI development.

Supporting AI and the Digital Economy

istockphoto 1396177379 612x612 1
A Chevron gas station at night is shown in Dallas, Texas, USA.

According to Chris James, founder and chief investment officer of Engine No. 1, energy is at the core of America’s ability to lead in AI and digital technology.

“Energy is the key to America’s AI dominance.

“By using abundant domestic natural gas to generate electricity directly connected to data centers, we can secure AI leadership, drive productivity gains across our economy, and restore America’s standing as an industrial superpower.”

Chris James, founder and chief investment officer of Engine No. 1

“This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face,” he emphasized.

The partnership between Chevron, Engine No. 1, and GE Vernova aims to meet this demand by constructing power foundries that will directly provide energy to data centers while ensuring that the energy is sustainably sourced from U.S. natural gas reserves.

Additionally, the projects are expected to incorporate renewable energy resources, further reducing their carbon footprint and contributing to broader efforts to decarbonize the energy sector.

As global attention turns to reducing emissions and transitioning to greener energy sources, this hybrid model allows for the continued use of natural gas while preparing for a more sustainable future.

Scott Strazik, CEO of GE Vernova, highlighted the importance of such projects in advancing U.S. energy infrastructure.

“We are excited to enable the advancement of data center growth in the U.S. by supporting delivery of critical power needs to customers using innovative solutions.

“GE Vernova is uniquely positioned to provide the energy systems and support required to make this large-scale endeavor possible, as the leading U.S. energy manufacturer.”

Scott Strazik, CEO of GE Vernova

Chevron, Engine No. 1, and GE Vernova’s joint development of power foundries signal a major shift in how AI-driven data centers will be powered in the U.S.

The initiative ensures energy security, economic growth, and job creation, while providing scalable and reliable power solutions for the next generation of computing infrastructure.

As demand for AI continues to surge, this innovative energy model could redefine how digital technology and industrial development intersect, shaping America’s position in the global tech economy.

READ ALSO: UK’s New US Envoy Praises Trump’s “Fresh Respect”

Tags: AIChevronEnergyEngine No. 1U.S. Natural Gas
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