By Mackenzie Tatananni
Chevron and GE Vernova announced they will be joining forces to develop power solutions for data centers running on natural gas.
Energy giant Chevron and gas turbine maker GE Vernova said they aim to establish a multi gigawatt-scale power plant in conjunction with Engine No. 1, an activist investment firm.
The first "power foundries" will use seven GE Vernova turbines to serve data centers across the country, the companies said.
The partnership is expected provide up to four gigawatts of power by the end of 2027 and sell surplus power to the grid over time.
In a press release, Engine No. 1 founder Chris James styled the project as an answer to artificial intelligence's appetite for power, claiming energy was the key to "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," James said.
Shares of Chevron and GE Vernova were up 0.2% and 5.5%, respectively, in premarket trading. GE Vernova fell 22% on Monday after DeepSeek, a Chinese start-up, raised concerns about the power needed to operate AI data centers.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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January 28, 2025 09:22 ET (14:22 GMT)
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