Engine No. 1 and Chevron U.S.A. Inc. have announced a partnership to establish a new company focused on developing scalable and reliable power solutions for U.S.-based data centers operating on domestic natural gas. In collaboration with GE Vernova, the initiative aims to construct the first multi-gigawatt co-located power plant and data center, with initial projects expected to begin during the next presidential term.
Referred to as “power foundries,” the first developments will utilize seven U.S.-manufactured GE Vernova 7HA natural gas turbines, secured through a slot reservation agreement. These projects will serve co-located data centers in the U.S. Southeast, Midwest, and West regions, with power generation designed to bypass the existing transmission grid. This approach is intended to minimize impacts on electricity prices for consumers while meeting the increasing energy demands of AI-driven technology.
The joint venture seeks to deliver up to four gigawatts of power—enough to supply electricity to an estimated 3 to 3.5 million U.S. homes. Initial in-service is targeted by the end of 2027, with potential for future expansion. The projects are also expected to integrate lower-carbon technologies, including carbon capture and storage, which has the capability to capture more than 90 percent of CO₂ emissions from the turbines, as well as renewable energy resources.
Chris James, founder and chief investment officer of Engine No. 1, emphasized the critical role of energy in maintaining technological leadership. “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,” he said.
Mike Wirth, chairman and CEO of Chevron Corporation, highlighted the significance of the partnership in strengthening the nation’s energy infrastructure. “President Trump’s pro-American energy policies and commitment to energy and AI dominance give us the confidence to invest in projects that will create American jobs and strengthen our national security,” he stated.
Scott Strazik, CEO of GE Vernova, underscored the company’s role in enabling data center expansion. “GE Vernova is uniquely positioned to provide the energy systems and support required to make this large-scale endeavor possible,” he noted.
The increasing demand for digital technology, including AI, cloud computing, and data consumption, necessitates cost-effective and scalable energy solutions. Over time, this model is expected to sell surplus power to the U.S. grid through future interconnections, helping to support national energy needs while maintaining affordability.
Beyond providing reliable energy for a rapidly growing sector of the economy, the initiative is projected to create thousands of jobs and contribute to the reindustrialization of the United States.
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