Chevron is spearheading a new initiative to develop scalable power solutions for U.S. data centres, leveraging its extensive natural gas resources. This places Chevron in a leading position to address the growing energy demands of the technology sector.
Data centres, which are essentially vast server warehouses, are experiencing exponential growth in energy consumption. A recent report by the Lawrence Berkeley National Laboratory suggests that data centre load growth has tripled over the past decade and is projected to double or triple by 2028.
This surge is driven by the rapid expansion of AI technologies, which require massive amounts of electricity to operate effectively. For instance, a single query on platforms like ChatGPT can consume up to ten times more energy than a Google search.
Chevron, in collaboration with Engine No. 1 and GE Vernova, is developing a series of power plants designed to supply electricity directly to data centres. These facilities, known as “power foundries,” will utilise GE Vernova’s high-efficiency gas turbines to generate power from natural gas.
The partnership aims to deliver up to four gigawatts of power, sufficient to power approximately 3.5 million U.S. homes annually. This approach ensures reliable energy supply and reduces reliance on the traditional grid, mitigating the risk of increased electricity costs for consumers.
Chevron is focusing on regions such as the South-east, Mid-west, and West for these projects, prioritising sites with access to natural gas and potential for carbon capture and storage (CCS) integration. CEO Mike Wirth has emphasised the importance of balancing energy supply with environmental considerations, stating that site selection criteria include proximity to carbon capture and storage capacity, as well as access to renewable energy sources.
Despite earlier commitments to renewable energy, natural gas has emerged as a preferred fuel for data centres due to its affordability, abundance in the U.S., and the speed at which gas-fired power plants can be constructed compared to nuclear facilities. This just shows the practicality of natural gas in meeting immediate energy demands while allowing for future integration of lower-carbon solutions.
Chevron’s move is part of a shift by major oil companies to branch out into power generation, driven by the tech industry’s increasing need for energy. With significant investments planned in data centres across the U.S., this transition aligns with the nation’s push to maintain its leadership in AI technologies.