Chevron is planning a massive 2.5 GW natural gas plant in West Texas to supply an AI data center. (WSJ)
The oil giant says it’s in “exclusive negotiations with a premier customer” for the off-grid project, expected to take first power by 2027, with room to expand beyond 2.5 GW. Partners include Engine No. 1 and GE Verona.
The project reflects a strategic hedge: Chevron plans to grow oil & gas output up to 3% annually through 2030 but sees new revenue in off-grid generation for hyperscalers seeking reliable energy.
At the same time, the company is tempering its climate ambitions, pledging to “keep pace” with market trends on hydrogen and carbon capture while channeling more capital toward high-return conventional and power projects.