Chevron, Engine No. 1 Partner to Build 4GW Power Plants for US Data Centers

Chevron has partnered with Engine No. 1 and GE Vernova to develop natural gas-fired power plants aimed at directly powering U.S.-based data centers, addressing the increasing energy demands of AI technology. This initiative, referred to as 'power foundries,' is expected to deliver up to 4 gigawatts of power by the end of 2027, sufficient to supply energy to around 3.5 million homes. The collaboration emphasizes the use of abundant domestic natural gas while integrating lower-carbon solutions, such as carbon capture and storage. Chevron's CEO expressed confidence in the project, citing supportive energy policies from the Trump administration as a driving factor behind the investment. The plants will be strategically located in the Southeast, Midwest, and West, initially bypassing the existing transmission grid to manage costs effectively. This venture highlights the growing trend of energy companies entering the power sector to support the burgeoning AI landscape in the U.S.