Chevron, Engine No. 1, and GE Vernova: Powering U.S. Data Centers with American Energy Abundance

In a strategic move to leverage American energy abundance and drive AI leadership, Chevron U.S.A. Inc. (NYSE: CVX), Engine No. 1, and GE Vernova (NYSE: GEV) have announced a joint venture to develop scalable, reliable power solutions for U.S. data centers running on U.S. natural gas. The partnership aims to establish the first multi-gigawatt-scale co-located power plant and data center during President Trump's second term, with initial in-service targeted by the end of 2027.

The first projects, dubbed "power foundries," are expected to leverage seven U.S.-made GE Vernova 7HA natural gas turbines, secured under a slot reservation agreement, on an accelerated timeline. The projects will serve co-located data centers in the U.S. Southeast, Midwest, and West regions, with power generation initially bypassing the existing transmission grid to reduce the risk of increasing electricity prices for consumers.

The joint development plans to deliver up to four gigawatts (GW) of power, equivalent to powering 3-3.5 million U.S. homes, with the potential for project expansion beyond this capacity. The projects are expected to be designed with the flexibility to integrate lower carbon solutions, such as carbon capture and storage (CCS) – capable of capturing >90% of the CO2 from the turbines – and renewable energy resources.

Chris James, founder and chief investment officer of Engine No. 1, stated, "Energy is the key to America's 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." Mike Wirth, chief executive officer and chairman of Chevron Corporation, added, "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 unrivaled workforce."

The partnership's strategic positioning is particularly strong, leveraging Chevron's natural gas supply chain expertise, GE Vernova's advanced turbine technology, and Engine No. 1's strategic investment approach. The initial target of seven GE 7HA turbines suggests a phased deployment strategy, allowing for operational optimization and market adaptation.

The timing of this announcement aligns with projected AI infrastructure growth, with market analysts forecasting data center power demand to double by 2030. The flexibility to integrate carbon capture technology (>90% CO2 capture capability) provides important ESG optionality while maintaining focus on near-term deployment.

For investors, this represents a significant diversification of Chevron's revenue streams into high-growth technology infrastructure, while maintaining core competencies in energy delivery. The potential for surplus power sales to the grid creates additional upside opportunity, though this appears secondary to the primary data center focus.

In conclusion, the partnership between Chevron, Engine No. 1, and GE Vernova addresses the growing demand for electricity in U.S. data centers, particularly for AI development, by leveraging American energy abundance to drive American AI leadership. The strategic advantages of co-locating power plants and data centers, along with the integration of carbon capture and storage and renewable energy resources, contribute to Chevron's lower carbon ambitions and ESG goals. This landmark partnership marks a significant step towards reindustrializing the U.S. and creating thousands of jobs in the process.