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Oil giant Chevron and Engine No. 1, an activist fund, are partnering up to build a new company that will develop scalable, reliable power solutions for the U.S.-based data centers running on U.S. natural gas.
The merger, in conjunction with GE Vernova, aims to establish the first multi-gigawatt-scale co-located power plant and data center.
A press release from Chevron outlines that the projects will serve co-located data centers in the U.S. Southeast, Midwest and West regions. These developments will deliver the equivalent of power for more than 3 million homes.
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A Chevron gas station in Rodeo, California, US, on Wednesday, June 19, 2024. Chevron Corp. is expected to release earnings figures on August 2. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
“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,” Chevron CEO and chairman Mike Wirth said in a statement. “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.”
This plan will initially bypass the existing transmission grid, reducing the risk of raising electricity costs, the company said.
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GE CEO and GE Aerospace CEO Lawrence Culp, Jr., (3rd L) and CEO of GE Vernova Scott Strazik (2nd R) ring the opening bell at the New York Stock Exchange (NYSE) April 2, 2024, in New York City. (TIMOTHY A. CLARY/AFP via Getty Images / Getty Images)
The companies say the endeavor will directly address the need for affordable, reliable energy, meeting the demand for electricity for U.S. data centers and enabling generations of AI to be developed in the U.S.
A Chevron gas station in Los Angeles, California. (Mario Tama/Getty Images / Getty Images)
Chris James, founder and chief investment officer of Engine No. 1, said, “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. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.”
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The project will also integrate carbon capture and storage, and renewable energy resources. Currently, the target is to put the plan in action by the close of 2027 with the potential for expansion following that.
