Chevron, Engine No 1, GE Vernova Partner to Power US Data Centers

Consultants Review Team

Chevron has teamed up with Engine No. 1 and GE Vernova to develop natural gas power plants in the U.S., designed to meet the rising electricity demand from data centers, especially to support artificial intelligence growth.

The partnership aims to build a multi-gigawatt-scale co-located power plant and data center.

The announcement follows the debut of Chinese tech startup DeepSeek's new AI chatbot, which has ignited debates over the AI rivalry between China and the U.S. As users flock to test DeepSeek's competitor to OpenAI's ChatGPT, the launch caused stocks of Wall Street tech giants and some energy companies to drop. Observers are keen to see if the Chinese firm can rival America's top AI companies at a much lower cost.

Last week, President Donald Trump signed an executive order on AI aimed at reversing previous government policies that his order claims "hinder American AI innovation." He also highlighted a new partnership between OpenAI, Oracle, and SoftBank, which plans to invest up to $500 billion in AI-related infrastructure.

According to the White House, the new entity, Stargate, will begin constructing data centers and the necessary electricity generation infrastructure for the continued advancement of AI in Texas. The initial investment is projected to be $100 billion, with the potential to increase fivefold.

Chevron, Engine No. 1, and GE Vernova announced on Tuesday that their first projects, called "power foundries," will utilize seven American-made GE Vernova 7HA natural gas turbines. These projects will power co-located data centers across the Southeast, Midwest, and West regions of the U.S., though the sites have yet to be determined.
The companies emphasized that the power generation will not initially rely on the existing transmission grid, helping to minimize the risk of driving up electricity costs for consumers.

The joint venture aims to provide up to four gigawatts of power, enough to supply 3 million to 3.5 million U.S. homes, with the first phase expected to be operational by the end of 2027. There is potential for further expansion of the project beyond that.

“Energy is central to America’s AI leadership. By utilizing abundant domestic natural gas to generate electricity directly linked to data centers, we can secure AI dominance, boost productivity across the economy, and restore the U.S. as an industrial powerhouse,” said Chris James, founder and chief investment officer of Engine No. 1. “This partnership with Chevron and GE Vernova addresses the critical energy challenge we face.”