Chevron and ExxonMobil are planning to supply natural gas-powered energy in AI-driven data centers

Chevron is negotiating with a data center company to supply power from a planned 2.5-GW natural gas plant in West Texas, which could eventually scale to 5 GW. The plant is expected to begin operating in 2027, pending a final investment decision next year. Chevron says gas demand is growing quickly as data centers expand. The company is also partnering with Engine No. 1 and GE Vernova to develop large, behind-the-meter natural-gas power plants directly connected to data centers, with the first power expected by late 2027. ExxonMobil, meanwhile, is taking a different approach by integrating carbon capture. CEO Darren Woods says Exxon aims to cut more than 90% of emissions from natural-gas plants built for data centers. Exxon is in advanced discussions with major cloud providers (hyperscale's) to deliver low-carbon power solutions and sees itself as one of the few companies capable of doing this in the near term. Both companies are betting that natural gas—especially with lower-carbon technology—will become essential infrastructure as data center electricity demand soars.