Monday

31-03-2025 Vol 19

Chevron Focuses on Gas Access and Decarbonization in Siting Data Center Power Facilities at CERAWeek

At CERAWeek, Chevron’s CEO Mike Wirth announced that the company will focus on accessible natural gas sources and methods to lower carbon intensity when selecting sites for their data center power generation facilities. This decision is aimed at supporting the hyperscaler companies, which are competing fiercely to enter the market quickly. Wirth highlighted the importance of off-grid power solutions in this competitive landscape, stating that site selection will also consider proximity to carbon capture and storage facilities, renewable energy sources, geothermal possibilities, and hydrogen options. Chevron’s recent venture includes a partnership with Engine No.

1 to develop gas-fired power generation specifically to support data centers across the Southeast, Midwest, and West of the United States. The initiative will utilize seven GE Vernova 550-MW 7HA gas turbines made in the US. Wirth mentioned that the turbines are expected to start delivering power by 2026, with commercial operations anticipated to begin by late 2027. The decision to enter this market stems from the challenge of obtaining reliable electricity from the power grid, a critical factor for companies operating AI technologies.

The gas supply landscape is also evolving. In the fourth quarter of 2024, Chevron’s gas production averaged 2.74 billion cubic feet per day (Bcf/d), reflecting a significant 27% increase from the previous year. Concurrently, discussions between upstream and midstream gas companies and AI developers are intensifying, particularly regarding direct gas supply for data center power generation. Analysts predict that the energy demand from US data centers could create an additional gas demand of 3 to 6 Bcf/d by 2030, although the role of renewables in meeting this demand is also expected to be substantial.

In the Permian Basin, the production of gas has surged, with an average of 20.5 Bcf/d in 2024, illustrating the region’s importance in the future energy landscape.

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