Engine No. 1, Chevron, and GE Vernova to Power U.S. Data Centers
Chevron (CVX), Engine No. 1, and GE Vernova have announced a partnership to develop power solutions for U.S. data centers using natural gas. The joint venture aims to deliver up to 4 gigawatts (GW) of power capacity, equivalent to powering 3-3.5 million U.S. homes, with initial service targeted by the end of 2027.
The project, dubbed 'power foundries,' will utilize seven U.S.-made GE Vernova 7HA natural gas turbines and will be located in the U.S. Southeast, Midwest, and West regions. The power generation will initially bypass the existing transmission grid to avoid increasing electricity prices for consumers. The facilities will be designed with flexibility to integrate carbon capture and storage (capable of capturing >90% CO2) and renewable energy resources.
This initiative aims to support the growing demand for electricity in data centers, particularly for AI development, while creating thousands of jobs and contributing to U.S. reindustrialization.
C Chevron (CVX), Engine No. 1 e GE Vernova hanno annunciato una partnership per sviluppare soluzioni energetiche per i data center statunitensi utilizzando gas naturale. La joint venture mira a fornire fino a 4 gigawatt (GW) di capacità energetica, equivalente a rifornire tra 3 e 3,5 milioni di abitazioni negli Stati Uniti, con il servizio iniziale previsto entro la fine del 2027.
Il progetto, soprannominato 'fonderie energetiche', utilizzerà sette turbine a gas naturale GE Vernova 7HA prodotte negli Stati Uniti e sarà situato nelle regioni sud-est, Midwest e ovest degli Stati Uniti. La generazione di energia inizialmente bypasserà la rete di trasmissione esistente per evitare un aumento dei prezzi dell'elettricità per i consumatori. Gli impianti saranno progettati con la flessibilità di integrare sistemi di cattura e stoccaggio del carbonio (in grado di catturare oltre il 90% di CO2) e risorse energetiche rinnovabili.
Questa iniziativa mira a sostenere la crescente domanda di elettricità nei data center, particolarmente per lo sviluppo dell'IA, creando nel contempo migliaia di posti di lavoro e contribuendo alla reindustrializzazione degli Stati Uniti.
C Chevron (CVX), Engine No. 1 y GE Vernova han anunciado una asociación para desarrollar soluciones energéticas para los centros de datos de EE. UU. utilizando gas natural. La empresa conjunta tiene como objetivo proporcionar hasta 4 gigavatios (GW) de capacidad energética, equivalente a abastecer entre 3 y 3.5 millones de hogares en EE. UU., con el servicio inicial previsto para finales de 2027.
El proyecto, apodado 'fundiciones de energía', utilizará siete turbinas de gas natural GE Vernova 7HA fabricadas en EE. UU. y estará ubicado en las regiones del sureste, medio oeste y oeste de EE. UU. La generación de energía inicialmente evitará la red de transmisión existente para evitar un aumento de los precios de la electricidad para los consumidores. Las instalaciones estarán diseñadas con la flexibilidad de integrar la captura y almacenamiento de carbono (capaz de capturar más del 90% de CO2) y recursos de energía renovable.
Esta iniciativa tiene como objetivo apoyar la creciente demanda de electricidad en los centros de datos, particularmente para el desarrollo de IA, al mismo tiempo que crea miles de empleos y contribuye a la reindustrialización de EE. UU.
Chevron (CVX), Engine No. 1, 그리고 GE Vernova가 천연가스를 이용한 미국 데이터 센터를 위한 전력 솔루션 개발을 위한 파트너십을 발표했습니다. 이 합작 투자와 함께 최대 4 기가와트 (GW)의 전력 용량을 제공하는 것을 목표로 하며, 이는 350만 가구에 해당하는 전력을 공급할 수 있으며, 초기 서비스는 2027년 말까지 제공될 예정입니다.
이 프로젝트는 '전력 주철소'라는 명칭 아래, 미국에서 제작된 GE Vernova 7HA 천연가스 터빈 7대를 사용하며, 미국 남동부, 중서부 및 서부 지역에 위치하게 됩니다. 전력 생산은 처음에는 기존 전송망을 우회하여 소비자의 전기 요금 상승을 방지할 것입니다. 시설은 90% 이상의 CO2를 포집할 수 있는 탄소 포집 및 저장 시스템과 재생 가능한 에너지원과의 통합을 위해 유연성 있게 설계될 것입니다.
이 이니셔티브는 특히 AI 개발을 위한 데이터 센터의 전기 수요 증가를 지원하는 동시에 수천 개의 일자리를 창출하고 미국의 재산업화에 기여하는 것을 목표로 하고 있습니다.
C Chevron (CVX), Engine No. 1 et GE Vernova ont annoncé un partenariat pour développer des solutions énergétiques pour les centres de données américains utilisant du gaz naturel. La coentreprise vise à fournir jusqu'à 4 gigawatts (GW) de capacité énergétique, ce qui équivaut à alimenter entre 3 et 3,5 millions de foyers américains, le service initial étant prévu d'ici la fin de 2027.
Le projet, surnommé 'fonderies d'énergie', utilisera sept turbines à gaz naturel GE Vernova 7HA fabriquées aux États-Unis et sera situé dans les régions du sud-est, du Midwest et de l'ouest des États-Unis. La production d'énergie contournera initialement le réseau de transmission existant pour éviter une augmentation des prix de l'électricité pour les consommateurs. Les installations seront conçues avec la flexibilité d'intégrer la capture et le stockage du carbone (capables de capturer plus de 90 % de CO2) et les ressources énergétiques renouvelables.
Cette initiative vise à soutenir la demande croissante d'électricité dans les centres de données, en particulier pour le développement de l'IA, tout en créant des milliers d'emplois et en contribuant à la réindustrialisation des États-Unis.
C Chevron (CVX), Engine No. 1 und GE Vernova haben eine Partnerschaft angekündigt, um Energie-Lösungen für US-Datenzentren unter Verwendung von Erdgas zu entwickeln. Das Joint Venture zielt darauf ab, bis zu 4 Gigawatt (GW) Leistungskapazität zu liefern, was dem Betrieb von 3 bis 3,5 Millionen US-Haushalten entspricht, mit einem geplanten Startservice bis Ende 2027.
Das Projekt, das als 'Energie-Gießereien' bezeichnet wird, wird sieben in den USA hergestellte GE Vernova 7HA Erdgas-Turbinen nutzen und wird in den Regionen Südosten, Mittlerer Westen und Westen der USA angesiedelt sein. Die Stromerzeugung wird zunächst das bestehende Übertragungsnetz umgehen, um einen Anstieg der Strompreise für Verbraucher zu vermeiden. Die Einrichtungen werden so konzipiert, dass sie flexibel CO2-Abscheidung und -Speicherung integrieren können (in der Lage, über 90% CO2 zu erfassen) und erneuerbare Energiequellen nutzen.
Diese Initiative zielt darauf ab, die wachsende Nachfrage nach Elektrizität in Datenzentren, insbesondere für die Entwicklung von KI, zu unterstützen und gleichzeitig Tausende von Arbeitsplätzen zu schaffen und zur Reindustrialisierung der USA beizutragen.
- Partnership targets 4 GW power capacity, equivalent to powering 3-3.5 million homes
- Direct power supply to data centers bypassing grid, reducing consumer price impact
- Potential for future grid power sales through planned interconnects
- Project designed with flexibility to integrate carbon capture and renewable energy
- Expected to create thousands of jobs
- Heavy reliance on natural gas amid global push for renewable energy
- Significant capital investment required for infrastructure development
- Project completion timeline extends to 2027, indicating delayed revenue generation
Insights
This landmark partnership marks a strategic pivot for Chevron into the rapidly expanding data center power infrastructure market, with significant implications for the company's growth trajectory. The planned 4GW capacity development represents approximately $4-5 billion in potential infrastructure investment, based on current natural gas power plant construction costs.
The strategic value proposition is threefold:
- Direct power provision to data centers creates a new, stable revenue stream independent of oil price volatility
- Bypassing the traditional grid infrastructure reduces regulatory complexity and accelerates deployment
- The co-location model minimizes transmission losses and ensures reliable power delivery
The partnership's competitive positioning is particularly strong, leveraging Chevron's natural gas supply chain expertise, GE Vernova's advanced turbine technology and Engine No. 1's strategic investment approach. The initial target of seven GE 7HA turbines suggests a phased deployment strategy, allowing for operational optimization and market adaptation.
The timing aligns with projected AI infrastructure growth, with market analysts forecasting data center power demand to double by 2030. The flexibility to integrate carbon capture technology (>90% CO2 capture capability) provides important ESG optionality while maintaining focus on near-term deployment.
For investors, this represents a significant diversification of Chevron's revenue streams into high-growth technology infrastructure, while maintaining core competencies in energy delivery. The potential for surplus power sales to the grid creates additional upside opportunity, though this appears secondary to the primary data center focus.
New joint development plans to deliver up to four gigawatts (GW) of power by leveraging American energy abundance to drive American AI leadership.
The first projects, which the companies refer to as “power foundries,” are expected to leverage seven
The companies’ plans directly address the need for affordable, reliable energy to meet the significant demand for electricity to power
Chris James, founder and chief investment officer of Engine No. 1, said, “Energy is the key to America’s AI dominance. 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.”
Mike Wirth, chief executive officer and chairman, Chevron Corporation, said, “We are proud to play our part in bringing to fruition President Trump’s vision for a new American golden age, powered by our enormous energy resources and unrivaled workforce. President Trump’s pro-American energy policies and commitment to energy and AI dominance give us the confidence to invest in projects that will create American jobs and strengthen our national security.”
Scott Strazik, chief executive officer for GE Vernova, said, “We are excited to enable the advancement of data center growth in the
The rapid growth of digital technology, including the rise of data consumption, cloud computing and AI-powered solutions, requires cost-effective and scalable solutions to enable growth and avoid burdening the existing grid. Over time, this innovative model is designed to sell surplus power to the
In addition to providing affordable, reliable energy to a rapidly growing part of America’s economy, the joint development is expected to create thousands of jobs and help the reindustrialization of the
About Engine No. 1
Engine No. 1 is an investment firm that builds and invests in companies that are driving the reindustrialization of
About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.
About GE Vernova
GE Vernova (NYSE: GEV) is purpose-built global energy company that includes Power, Wind, and Electrification segments and is supported by its accelerator businesses. Building on over 130 years of experience tackling the world’s challenges, GE Vernova is uniquely positioned to help lead the energy transition by continuing to electrify the world while simultaneously working to decarbonize it. GE Vernova helps customers power economies and deliver electricity that is vital to health, safety, security, and improved quality of life. GE Vernova is headquartered in
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Engine No. 1 Contact
Steve Murray
212-843-8293
smurray@rubenstein.com
Chevron Contact
Kelly Russell
936-333-4077
kellyrussell@chevron.com
GE Vernova Contact
Treacy Reynolds
978-810-4398
Treacy.reynolds@ge.com
Source: Chevron Corporation
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