Chevron Plans to Build Gas Plants to Power AI Data Centers
[Stay on top of transportation news: Get TTNews in your inbox.]
Chevron Corp. is launching a partnership to develop natural gas-fired power plants next to data centers, a move that will allow it to tap into surging demand for electricity for artificial intelligence.
The oil and gas behemoth is working with the activist investor Engine No. 1 and GE Vernova Inc. and aims to have its first multi-gigawatt plant up and running by the end of President Donald Trump’s term, according to a statement Jan. 28.
U.S. demand for electricity is projected to surge almost 16% over the next five years, more than triple the estimate from a year ago, driven in part by new data centers. However, Chinese AI company DeepSeek has thrown those forecasts into doubt. Power stocks plunged Jan. 27 on concern that DeepSeek’s model, which appears to be more efficient, can achieve the same results as competitors like OpenAI for a fraction of the energy use.
Chevron and its partners plan to build the power plants beside data centers in the Southeast, Midwest and West regions. Initially, the plants will send power directly to the data centers, bypassing existing transmission grids. They will use GE Vernova gas turbines.
The companies plan to build plants with enough capacity to produce up to four gigawatts of power, enough for about 3.5 million U.S. homes, by the end of 2027.
“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,” Chevron CEO Mike Wirth said in the statement.
Want more news? Listen to today's daily briefing below or go here for more info:
