How Chevron & GE Vernova Power Plants Could Solve AI Demands

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Some AI facilities now require upwards of 200 megawatts, equivalent to the consumption of a small city
Partnership aims to develop 4GW of gas-powered generation capacity for US data centres amid growing AI demand, with first facilities operational by 2027

Data centres across the United States (US) are preparing for a continued surge in power demand, as customers seeking technology like AI strain power grids. Gartner predicts that 40% of AI facilities will face operational restrictions due to electricity availability by 2027, projecting that generative AI (Gen AI) workloads could drive data centre power consumption to increase by 160% over the next two years.

With traditional grid infrastructure often struggling to meet these increasing power demands – with some AI facilities now requiring upwards of 200 megawatts, equivalent to the consumption of a small city – the constraints on power availability have led to restrictions on data centre construction in regions including Dublin, Singapore and parts of Virginia.

Key facts
  • 4 gigawatts: Total planned power generation capacity
  • 7: Number of GE Vernova 7HA gas turbines secured for initial projects
  • 90%: Potential carbon dioxide capture rate from planned carbon capture technology

And following President Trump’s announcements of significant investments in data centres to provide the power needed to cater to AI demand, Chevron, GE Vernova and investment firm Engine No. 1 have announced plans to construct power generation facilities directly connected to data centres across the United States.

GE Vernova agreement underpins power generation plans

The joint venture has secured an agreement for seven GE Vernova 7HA gas turbines, which will form the foundation of what the companies term “power foundries”. These facilities will generate electricity from natural gas and supply it directly to co-located data centres, bypassing the traditional power transmission infrastructure.

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The planned installations will serve facilities across three US regions – the Southeast, Midwest and West. By avoiding transmission through the existing grid infrastructure, the venture aims to prevent additional load on current power distribution systems.

Technical specifications point to carbon capture integration

The development plans outline a total generation capacity of four gigawatts – equivalent to the power consumption of approximately 3 to 3.5 million US households. The technical specifications include provisions for future integration of carbon capture and storage technology, which the companies indicate could remove more than 90% of carbon dioxide emissions from the turbines.

The project also includes capacity for renewable energy resource integration, though specific details of these capabilities have not been disclosed.

Chris James, Founder and Chief Investment Officer of Engine No. 1

Chris James, Founder and Chief Investment Officer of Engine No. 1, says: “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.”

Data centre industry impact shows scale of development

The venture represents a shift in data centre power infrastructure strategy. Rather than relying on grid connections, which can face capacity constraints in regions with high data centre concentration, the power foundries will generate electricity at the point of consumption.

The partnership’s ‘power foundries’ will generate electricity from natural gas

The development addresses challenges faced by data centre operators in securing reliable power sources for facilities supporting cloud computing, data processing and AI applications. The rapid growth in these sectors has created unprecedented demand for power infrastructure.

Mike Wirth, Chief Executive Officer and Chairman of Chevron Corporation, says: “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 unrivalled workforce.”

Mike Wirth, Chief Executive Officer and Chairman of Chevron Corporation

Project timeline reveals expansion potential

The project timeline targets initial operations by the end of 2027, with potential for expansion beyond the initial four gigawatt capacity. The design includes capability for future grid connections, allowing surplus power to be sold to the broader electricity market.

GE Vernova, which specialises in power generation and renewable energy technology, will manufacture the turbines. The company brings experience from its power, wind and electrification segments to the project.

Scott Strazik, Chief Executive Officer for GE Vernova, says: “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, as the leading US energy manufacturer.”

Scott Strazik, Chief Executive Officer for GE Vernova

The project addresses growing power demands from digital infrastructure expansion, particularly in artificial intelligence applications. Data centre power consumption has become a constraint on AI development, with some facilities requiring hundreds of megawatts of continuous power supply.

Partnership structure reveals industry roles

Engine No. 1, an investment firm focused on industrial development in the United States, structured the partnership to address power supply challenges in the data centre sector. Chevron, which produces crude oil and natural gas alongside manufacturing transportation fuels and petrochemicals, will supply the natural gas and manage the power generation operations.

The companies expect the development to create employment opportunities across the construction and operational phases. The power foundries represent a new model for data centre power provision, combining generation and consumption facilities in single locations.

Mike Wirth says: “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.”


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