Chevron plans to build a series of power plants in West Texas by 2027 to supply growing electricity needs from data centers, marking a major shift beyond its traditional oil and gas business.
The U.S. energy giant aims to install multiple gigawatts of capacity by 2030, reflecting its strategy to capture rising demand for power driven by artificial intelligence and digital infrastructure.
Chevron is partnering with GE Vernova and Engine No. 1 on the project and is in exclusive talks with a data center operator. A final investment decision is expected early next year.
The move positions Chevron as more than an oil producer — it is stepping into the fast-growing energy supply market for data centers, one of the most competitive and high-demand sectors in the global energy transition.
Leveraging its natural gas resources in the Permian Basin, Chevron plans to generate power locally, reducing costs and minimizing new exploration needs. Collaborating with GE Vernova provides access to advanced turbine and grid-scale technologies, while Engine No. 1 brings financial and operational expertise to support long-term execution.
As AI and cloud computing continue to fuel unprecedented power consumption, Chevron’s new venture underscores how traditional energy companies are adapting to the digital era — turning their energy know-how into the backbone of the world’s data-driven future.