Chevron launches AI data centre power business with first project

USA

WEST TEXAS, November 12, 2025 – Chevron has launched a new line of business providing natural gas-fired power to data centres, starting with a project in West Texas, Bloomberg reported on Wednesday.

The facility is expected to start operations in 2027 with capacity of 2.5 GW and future expansion to 5 GW, Chevron said in a presentation ahead of its investor day. The company is in exclusive talks with the unnamed end user and expects a final investment decision early next year.

The venture aims to monetise Chevron’s 85 mcm (3 bcf) per day of natural gas output in the Permian Basin by supplying AI data centres increasingly located close to fuel sources. The power plant will likely be built off-grid to avoid competing with public electricity supply.

“We’ve got the gas,” CFO Eimear Bonner told Bloomberg. “We are uniquely positioned to have a very competitive project.”

The project includes an order for seven large turbines from GE Vernova via a partnership with Engine No. 1.

Chevron aims to grow oil and gas output 2-3% annually through 2030 while cutting capital spending to USD 18 billion-21 billion per year. It forecasts free cashflow rising 14% annually to about USD 30 billion by 2030 at USD 70-per-barrel Brent, with annual share buybacks of USD 10 billion-20 billion.

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