Chevron and Engine No. 1 have announced a groundbreaking partnership to develop scalable, reliable power solutions for U.S.-based data centers using U.S. natural gas. This initiative aims to establish the first multi-gigawatt-scale co-located power plant and data center, leveraging seven GE Vernova 7HA natural gas turbines. The project targets the U.S. Southeast, Midwest, and West regions, ensuring affordable and reliable energy for AI development. The partnership addresses the need for cost-effective power solutions to support the rapid growth of digital technology, including data consumption, cloud computing, and AI-powered solutions.
Chevron, one of the world’s leading energy companies, has taken a significant step into the future of technology by partnering with Engine No. 1 to power AI data centers with U.S. natural gas. This innovative project aims to address the critical need for affordable and reliable energy to meet the growing demand for electricity in data centers.
The partnership, which includes GE Vernova, aims to establish the first multi-gigawatt-scale co-located power plant and data center. This ambitious project will leverage seven U.S.-made GE Vernova 7HA natural gas turbines, secured under a slot reservation agreement, to generate electricity directly connected to data centers. The initial projects are expected to serve co-located data centers in the U.S. Southeast, Midwest, and West regions.
One of the key benefits of this project is its ability to reduce the risk of increasing electricity prices for consumers. The power generation is not designed to flow initially through the existing transmission grid, ensuring that the energy is used efficiently and cost-effectively.
The rapid growth of digital technology, including data consumption, cloud computing, and AI-powered solutions, requires cost-effective and scalable solutions to enable growth without burdening the existing grid. This innovative model is designed to sell surplus power to the U.S. power grid through future interconnects, supporting broader energy demands while keeping costs low.
Chris James, founder and chief investment officer of Engine No. 1, emphasized the importance of energy in America’s AI dominance. “Energy is the key to America’s AI dominance,” he said. “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.”
Mike Wirth, Chevron CEO and chairman, added, “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. 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.”
Scott Strazik, CEO for GE Vernova, highlighted the company’s role in making this large-scale endeavor possible. “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,” he said.
The joint development plans to deliver up to four GW of power, equivalent to powering 3-3.5 million U.S. homes. Initial in-service is targeted by the end of 2027, with potential for project expansion beyond this capacity. The projects are designed with the flexibility to integrate lower carbon solutions, such as carbon capture and storage (CCS), which can capture >90% of CO2 from the turbines, and renewable energy resources.
In summary, Chevron’s partnership with Engine No. 1 and GE Vernova marks a significant step towards securing America’s position as a leader in AI technology. By leveraging U.S. natural gas to power data centers, this initiative addresses the critical need for affordable and reliable energy while supporting the growth of digital technology.
Q1: What is the main goal of Chevron’s partnership with Engine No. 1 and GE Vernova?
A1: The main goal is to develop scalable, reliable power solutions for U.S.-based data centers using U.S. natural gas.
Q2: How many GE Vernova 7HA natural gas turbines will be used in the project?
A2: Seven U.S.-made GE Vernova 7HA natural gas turbines will be used.
Q3: Which regions will the initial projects serve?
A3: The initial projects will serve co-located data centers in the U.S. Southeast, Midwest, and West regions.
Q4: What is the expected capacity of the power generation?
A4: The joint development plans to deliver up to four GW of power, equivalent to powering 3-3.5 million U.S. homes.
Q5: When is the initial in-service targeted?
A5: Initial in-service is targeted by the end of 2027.
Q6: How will the power generation be integrated into the existing grid?
A6: The power generation is not designed to flow initially through the existing transmission grid, reducing the risk of increasing electricity prices for consumers.
Q7: What lower carbon solutions will be integrated into the project?
A7: The projects are designed with the flexibility to integrate lower carbon solutions, such as carbon capture and storage (CCS), which can capture >90% of CO2 from the turbines, and renewable energy resources.
Q8: What is the significance of this project in terms of America’s AI dominance?
A8: This project is significant because it uses abundant domestic natural gas to generate electricity directly connected to data centers, securing AI leadership and driving productivity gains across the economy.
Q9: Who are the key figures involved in this partnership?
A9: The key figures include Chris James, founder and chief investment officer of Engine No. 1; Mike Wirth, Chevron CEO and chairman; and Scott Strazik, CEO for GE Vernova.
Q10: What is the long-term potential of this project?
A10: The project has the potential for expansion beyond its initial capacity and is designed to sell surplus power to the U.S. power grid through future interconnects, supporting broader energy demands while keeping costs low.
Chevron’s partnership with Engine No. 1 and GE Vernova marks a significant step towards securing America’s position as a leader in AI technology. By leveraging U.S. natural gas to power data centers, this initiative addresses the critical need for affordable and reliable energy while supporting the growth of digital technology. The project’s focus on scalability, reliability, and integration of lower carbon solutions positions it as a model for future energy and tech collaborations.
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