Chevron has announced plans to build natural gas based power plants next to data centres in the United States. This move is timely as energy demand to support the growth of artificial intelligence is expected to spike. 

The project will receive contributions from Engine No 1 and GE Vernova. 

Also read: Chevron Launches Oil Production at Tengiz Future Growth Project

The announcement concerning the data centers comes a day after Chinse startup DeepSeek unveiled its AI model, sending shockwaves globally. DeepSeek’s AI model claims to use far less computing power than industry-leading models in the US. This claim has given rise to investors re-evaluating the billions invested in AI infrastructure and igniting a considerable sell off in technology and energy stocks.

Regardless of the market’s response, DeepSeek highlighted that energy demands will be essential for the United States to maintain its competitiveness in the global AI competition, stated Jeff Gustavson, president of Chevron New Energies, in a press briefing.

The project planned by Chevron will utilise GE Vernova’s natural gas turbines to deliver up to 4 GW of power. This power is sufficient to support nearly 3 million households.

The electricity will first bypass the current transmission grid. This minimizes the potential for increasing electricity expenses for households and consumers, according to the company.

The company expects to begin initial service by the end of 2027. The project is subject to potential expansion beyond the 4 GW capacity.

Chevron CEO Mike Wirth mentioned that President Trump’s pro American energy policies and commitment to energy and AI dominance provided them with the confidence to invest in projects aimed at creating American jobs and enhancing national security. 

Chevron plans to incorporate carbon capture and storage, along with renewable energy resources, into the projects

The International Finance Corporation, part of the World Bank Group, will invest in BV Bank to make financing for small-scale solar projects in Brazil. This joint venture aims at improving access to solar energy among consumers to aid in diversifying the growth of Brazil’s energy sources.

IFC Investment to Power Up Solar Energy Growth in Brazil

IFC is providing up to $150 million, five-year loan for the financing of solar projects for BV Bank. It will employ IFC’s experience in financing small-scale, residential rooftop solar panel installations throughout the country. This investment bridges the existing financing gap in the solar sector of Brazil, especially for distributed generation systems driving the nation’s growth.

Addressing the Solar Financing Gap

In 2023, DG systems constituted over 70% of Brazil’s solar energy capacity additions, rapidly propelling the country into renewable energy. In 2022, 78% of customers faced financing difficulties in engaging the solar project, which resulted in a major barrier to adoption. IFC will also attempt to reduce the cost of solar energy and increase access. Additionally, consumers will be provided with a capability for overcoming financial barriers in adopting this energy source.

Supporting Sustainable Economic Growth and Climate Resilience

Helena de la Torre, IFC’s regional manager for Financial Institutions – Brazil and Southern Cone, said, “We are pleased to work with BV to scale up financing for solar solutions. This initiative supports Brazil’s efforts towards sustainable economic growth and climate resilience, helping the country on its journey to becoming a global leader on climate issues.”

She added, “This investment is also important to drive the expansion of financing for solar DG projects in Brazil, encouraging other financial institutions to replicate the business model.”

Also read: IFC Commits $165 Million to São Martinho for Biomethane Production and Brazil’s Decarbonization Efforts

Strengthening Brazil’s Green Economy

This is a component of the IFC’s larger strategy to increase access to climate finance, especially solar systems. This initiative places it within the five-year World Bank Group strategy for Brazil: sustainability, competitiveness, and inclusiveness. The World Bank will position Brazil as a world leader in the transition of the low-carbon economy through this strategy.

Furthermore, IFC’s investment in BV Bank will boost solar DG financing in Brazil, inspiring other financial institutions to adopt similar models.