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Houston company names new tech partner on projects aimed at increasing grid reliability

Grid United announced a new partnership with Hitachi Energy that it's entered into a collaboration to work on high-voltage direct current technology for Grid United transmission projects. Photo via hitachienergy.com

A Houston company has tapped a new tech partner to work on projects that are expected to help boost transmission capacity across the U.S. amidst increased, continued demands for energy.

Houston-based electrical transmission developer Grid United and Hitachi Energy announced at CERAWeek that it's entered into a collaboration to work on high-voltage direct current technology for Grid United transmission projects. These projects will aim to interconnect the eastern and western regional power grids in the U.S. The Eastern Interconnection east of the Rocky Mountains, the Western Interconnection west of the Rockies and the Texas Interconnection run by the Electric Reliability Council of Texas, make up the three main power grids.

This technology and these projects play a key role in the U.S. government’s commitment to accelerating the energy transition, which includes the priorities of the U.S. Department of Energy. The collaboration is considered a capacity reservation agreement in which Hitachi Energy will provide HVDC technology to support the development of multiple Grid United HVDC interconnections. The interconnections aim to mitigate the impact of extreme events and accommodate demands for electricity.

“With industry leading HVDC technology and a global track record, Hitachi Energy is a needed collaborator for the development of a more resilient and reliable electric power grid,” Michael Skelly, CEO and co-founder of Grid United, says in a news release. “By working with companies like Hitachi Energy and partnering with incumbent utilities, we’re confident we can quicken the pace of modernizing and strengthening the U.S. electric grid to meet rapidly increasing electricity demand.”

The multi-contract framework is one of the first of new business models, which allows Hitachi Energy to plan in “advance to increase manufacturing capacity, expand and train the workforce, and maximize standardization to increase efficiency between successive projects” according to a news release.

We are proud to collaborate with Grid United to strengthen the U.S. power grid, making it more flexible, reliable, and secure,” Managing Director of Grid Integration Business Niklas Persson says in a news release. “By applying our innovative new business model which enables speed and scale in the supply chain, we are confident we can make important contributions to streamlining the development process to help accelerate the energy transition.”

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A View From HETI

Chevron is in talks with Microsoft and Engine No. 1 about a massive natural gas power plant in Texas. Photo via Getty Images

Software giant Microsoft is negotiating exclusively with Houston-based oil and gas titan Chevron and investment firm Engine No. 1 about the development of a $7 billion power plant in West Texas that would supply electricity for a Microsoft data center campus.

The proposed natural-gas-fired plant initially would generate 2,500 megawatts of electricity, Bloomberg reports. The plant would be built near Pecos, a Permian Basin city, in an area where Microsoft plans to build a 2,500-megawatt data center campus on a 7,000-acre site.

A deal with Microsoft would secure a long-term customer for the plant’s output and help finance its construction, Bloomberg says. The project, expected to be producing power by 2030, still requires tax and environmental approvals as well an agreement to terms among Chevron, Engine No. 1, and Microsoft.

In a statement issued after Bloomberg reported the news, Chevron acknowledged it was in exclusive talks with Engine No. 1 and Microsoft, but the oil and gas company offered no details.

Chevron says the proposed plant “reflects an emerging shift in how power for AI is being developed, bringing energy supply closer to demand through co-located, behind-the-meter generation to deliver reliability while helping avoid added strain on regional electricity systems. It pairs sustained, always-on demand from advanced computing with proven capability to design, build, and operate large-scale energy infrastructure.”

Development of gas-powered electrical plants for AI data centers represents a new—and potentially lucrative— business line for Chevron. In 2025, Chevron, Engine No. 1 and GE Vernova announced a partnership to produce natural gas for AI data centers in the U.S.

Chevron’s collaboration with Engine No. 1 has already secured an order for seven large natural gas turbines from GE Vernova, according to Bloomberg.

“Energy is the key to America’s AI dominance,” Chris James, founder and chief investment officer of Engine No. 1, said last year. “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.”

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