Engine No. 1, Chevron, and GE Vernova Join Forces to Develop Scalable Energy Solutions for U.S. Data Centers
Engine No. 1 and Chevron U.S.A. Inc. (NYSE: CVX) have officially announced the formation of a strategic partnership to develop innovative and scalable energy solutions tailored for U.S.-based data centers powered by domestically sourced natural gas. This collaboration represents a pivotal moment in energy and artificial intelligence (AI) development, ensuring a stable and reliable electricity supply for the rapidly expanding digital infrastructure sector.
The joint initiative, developed in conjunction with GE Vernova (NYSE: GEV), is set to establish the first multi-gigawatt co-located power plant and data center during President Trump’s second term. This project is designed to leverage America’s vast energy resources to power the next generation of AI-driven technology and ensure that the United States remains at the forefront of technological advancements.
A Groundbreaking Energy Initiative for Data Centers
The first projects, termed “power foundries” by the partnering companies, will incorporate seven U.S.-manufactured GE Vernova 7HA natural gas turbines. These turbines, secured under a slot reservation agreement, will be deployed on an accelerated timeline, allowing for a swift and efficient rollout. The power foundries will be strategically located to serve co-located data centers in the U.S. Southeast, Midwest, and West regions.
Unlike traditional power generation facilities, the energy produced by these power foundries will not initially be fed into the national transmission grid. Instead, the electricity will be directed exclusively to co-located data centers, reducing the risk of increased electricity prices for consumers while ensuring a stable power supply for critical computing operations.
Meeting the Growing Demand for Data Center Power
The demand for electricity to power AI-driven technologies and data centers has grown exponentially in recent years. AI, cloud computing, and data processing require vast amounts of energy, often straining the existing grid infrastructure. The joint initiative between Engine No. 1, Chevron, and GE Vernova directly addresses this challenge by providing cost-effective, high-capacity power generation solutions.
By utilizing natural gas, the project aims to deliver up to four gigawatts (GW) of power—equivalent to supplying energy to approximately 3 to 3.5 million U.S. homes. The initial phase of the project is targeted for completion by the end of 2027, with potential expansions beyond this capacity to accommodate the growing energy demands of AI and data processing facilities.
Commitment to Sustainable Energy Solutions
While natural gas is a primary energy source for these projects, the partnership has also integrated forward-thinking sustainability measures into its long-term strategy. The power foundries will be designed to incorporate carbon capture and storage (CCS) technology, capable of capturing over 90% of carbon dioxide (CO2) emissions from the turbines. Additionally, the facilities will have the flexibility to integrate renewable energy sources, further reducing their carbon footprint over time.
These sustainability initiatives align with the companies’ broader vision of balancing energy security with environmental responsibility. By implementing CCS technology and exploring alternative energy solutions, the joint venture sets a precedent for cleaner energy practices within the industrial and technological sectors.
Leadership Perspectives on the Partnership
Chris James, Founder and Chief Investment Officer of Engine No. 1, emphasized the crucial role of energy in maintaining the United States’ competitive edge in AI technology. “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. This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face,” James stated.
Chevron Chairman and CEO Mike Wirth echoed similar sentiments, highlighting the significance of leveraging domestic energy resources for national economic and technological growth. “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. 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,” Wirth said.
Scott Strazik, CEO of GE Vernova, emphasized the importance of reliable energy infrastructure for technological progress. “We are excited to enable the advancement of data center growth in the U.S. by supporting delivery of critical power needs to customers using innovative solutions. GE Vernova is uniquely positioned to provide the energy systems and support required to make this large-scale endeavor possible, as the leading U.S. energy manufacturer,” Strazik remarked.
Economic and Industrial Impact
Beyond addressing energy demands for AI and data processing, the initiative is expected to generate significant economic benefits. The joint development is projected to create thousands of new jobs across the energy, technology, and manufacturing sectors. Additionally, it contributes to the reindustrialization of the United States by fostering domestic energy production, infrastructure development, and workforce expansion.
The ability to co-locate power generation with data centers presents an efficient model that not only ensures energy security for AI-driven technologies but also lays the groundwork for a broader industrial resurgence. Over time, the power foundries could evolve to supply surplus electricity to the national grid through future interconnections, further supporting the country’s energy landscape.
A Model for the Future of Energy and AI
The partnership between Engine No. 1, Chevron, and GE Vernova represents a transformative step in the intersection of energy and technology. As AI and cloud computing continue to drive demand for reliable electricity, the implementation of large-scale, co-located power plants provides a replicable model for sustainable growth.
By strategically leveraging domestic natural gas resources, incorporating cutting-edge carbon capture technology, and prioritizing co-located power generation, the initiative ensures a stable energy future for data centers and AI development in the United States.
The Companies
Engine No. 1
Engine No. 1 is an investment firm focused on driving the reindustrialization of the United States through strategic investments in energy, technology, and infrastructure. The firm aims to build companies that enhance American industrial capabilities and economic growth. For more information, please visit: www.engine1.com
Chevron
Chevron is one of the world’s leading integrated energy companies, committed to delivering affordable, reliable, and ever-cleaner energy solutions. The company produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals, and additives, and invests in cutting-edge technologies to drive industry advancements. Chevron is dedicated to expanding its oil and gas business while also growing lower-carbon initiatives in renewable fuels, carbon capture, hydrogen, and other emerging energy solutions.
GE Vernova
GE Vernova is a leader in energy solutions, providing cutting-edge technology for power generation and grid infrastructure. With a focus on delivering efficient and reliable energy systems, GE Vernova plays a vital role in supporting the growing demand for electricity, particularly in sectors such as AI, cloud computing, and industrial manufacturing
As AI and data processing technologies continue to evolve, securing a stable and scalable power infrastructure becomes increasingly critical. The partnership between Engine No. 1, Chevron, and GE Vernova exemplifies a forward-thinking approach to meeting these energy challenges. By leveraging natural gas, integrating sustainable practices, and fostering industrial growth, this initiative paves the way for America’s continued leadership in AI and energy innovation
