power partners

Chevron and partners to develop innovative power plants to support AI-focused data centers

Chevron, Engine No. 1 and GE Vernova will develop power plants that allow for the future integration of lower-carbon solutions to support AI-focused data centers. Photo via Getty Images

Houston-based Chevron U.S.A. Inc., San Francisco investment firm Engine No. 1, and Boston electric service company GE Vernova have announced a partnership to create natural gas power plants in the United States. These plants support the increased demand for electricity at data centers, specifically those developing artificial intelligence solutions.

“The data centers needed to scale AI require massive amounts of 24/7 power. Meeting this demand is forecasted to require significant investment in power generation capacity, while managing carbon emissions and mitigating the risk of grid destabilization,” Chevron CEO Mike Wirth, shared in a LinkedIn post.

The companies say the plants, known as “power foundries,” are expected to deliver up to four gigawatts, equal to powering 3 million to 3.5 million U.S. homes, by the end of 2027, with possible project expansion. Their design will allow for the future integration of lower-carbon solutions, such as carbon capture and storage and renewable energy resources.

They are expected to leverage seven GE Vernova 7HA natural gas turbines, which will serve co-located data centers in the Southeast, Midwest and West. The exact locations have yet to be specified.

“Energy is the key to America’s AI dominance, “ Chris James, founder and chief investment officer of investment firm Engine No. 1, said in a news release. “By using abundant domestic natural gas to generate electricity directly connected to data centers, 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.”

According to the companies, the projects offer cost-effective and scalable solutions for growth in electrical demand while avoiding burdening the existing electrical grid. The companies plan to also use the foundries to sell surplus power to the U.S. power grid in the future.

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A View From HETI

A new joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants for the ERCOT and PJM Interconnection grids. Photo via Getty Images.

Houston-based power provider NRG Energy Inc. has formed a joint venture with two other companies to meet escalating demand for electricity to fuel the rise of data centers and the evolution of generative AI.

NRG’s partners in the joint venture are GE Vernova, a provider of renewable energy equipment and services, and TIC – The Industrial Co., a subsidiary of construction and engineering company Kiewit.

“The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation,” Robert Gaudette, head of NRG Business and Wholesale Operations, said in a news release. “Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs.”

Initially, the joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants, which uses a combination of natural gas and steam turbines that produce additional electricity from natural gas waste. Electricity from these projects will be produced for power grids operated by the Electric Reliability Council of Texas (ERCOT) and PJM Interconnection. The projects are scheduled to come online from 2029 through 2032.

The joint venture says the model it’s developing for these four projects is “replicable and scalable,” with the potential for expansion across the U.S.

The company is also developing a new 721-megawatt natural gas combined-cycle unit at its Cedar Bayou plant in Baytown, Texas. Read more here.

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