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.
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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