Chevron and Engine No. 1 Partner in collaboration with GE Vernova to Develop Power Solutions for US Data Centers

Chevron and Engine No. 1, in collaboration with GE Vernova form a joint development to provide up to four gigawatts (GW) of power, leveraging abundant US energy to support the country’s leadership in artificial intelligence.

Engine No. 1 and Chevron U.S.A. Inc. have announced a partnership to establish a new company focused on developing scalable, reliable power solutions for US-based data centers utilizing domestic natural gas. In collaboration with GE Vernova, the initiative aims to create multi-gigawatt-scale co-located power plants and data centers.

Key Aspects of the Project

• Power Foundries: The initial projects, termed "power foundries," will utilize seven US-manufactured GE Vernova 7HA natural gas turbines. These facilities will serve co-located data centers in the Southeast, Midwest, and West regions of the US. The power generated is designed to bypass the existing transmission grid, minimizing the risk of increased electricity prices for consumers.

• Energy Capacity: The joint development aims to deliver up to four gigawatts (GW) of power, enough to supply electricity to approximately 3 to 3.5 million US homes. The first in-service date is targeted for late 2027, with the potential for expansion.

• Lower Carbon Solutions: The projects are expected to be designed with the flexibility to integrate carbon capture and storage (CCS), which could capture over 90 percent of CO₂ emissions from the turbines, along with renewable energy resources.

This collaboration seeks to address the growing demand for more affordable, reliable energy to power data centers while leveraging domestic natural gas resources. Over time, the model is expected to allow surplus power to be sold to the US grid through future interconnects. The joint development is also projected to support job creation in related industries.

According to Craig Resnick, Vice President, ARC Advisory Group, "This partnership addresses both the issues of increased demand for data centers as a result of the proliferation of technologies such as Artificial Intelligence, as well as energy transition, ensuring reliable power to these data centers without creating burdens on existing transmission grids that could negatively affect consumer prices and the ability to serve consumer's growing electricity demands."

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