Chevron USA and US investor Engine No.1 have partnered to establish a new company to develop natural gas-fired power plants for US-based AI data centres, in collaboration with energy company GE Vernova.
The plans address the growing need for affordable and reliable energy, essential for powering US data centres and fostering AI development within the country.
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The joint development is projected to deliver up to 4GW by the end of 2027, with the potential for further expansion.
The partnership will establish the first multi-gigawatt-scale power plant and data centre.
Engine No.1 founder and chief investment officer Chris James stated: “Energy is the key to America’s AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centres, 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.”
The first projects, referred to as “power foundries,” will utilise seven US-made GE Vernova 7HA natural gas turbines serving co-located data centres in the Southeast, Midwest and West.
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By GlobalDataThe generated power will not flow through the existing transmission grid initially, mitigating the risk of electricity price increases for consumers.
The projects are also designed to accommodate lower carbon solutions, such as carbon capture and storage, which can capture 90% of CO₂ emissions from the turbines, and the integration of renewable energy resources.
Power demand from data centres is projected to increase by 16% up to 2029, as reported by Bloomberg. Technology companies are considering nuclear and renewable energy solutions to operate their data centres.
However, gas-fired power plants remain competitive due to their lower cost and construction, presenting opportunities for gas producers and gas plant operators.
GE Vernova chief executive officer Scott Strazik stated: “We are excited to enable the advancement of data centre growth in the US by supporting delivery of critical power needs to customers using innovative solutions. GE Vernova is uniquely positioned to provide the energy systems and support required to make this large-scale endeavour possible.”
In January 2025, NextEra Energy partnered with GE Vernova to develop natural gas-fired power generation projects to supply electricity to AI data centres and other major power consumers.
