Chevron & GE Vernova: On-Site Power for Data Centre Demands

Data centres throughout the United States are gearing up for an expected surge in energy requirements as the demand for advanced technologies, like artificial intelligence (AI), continues to grow.
A projection by Gartner suggests that 40% of AI facilities will face operational restrictions by 2027 due to insufficient power supplies.
This shortfall comes as generative AI (Gen AI) workloads could push data centre power usage up by 160% in the next two years.
Traditional power grids are already being stretched thin, with some AI facilities now using as much as 200 megawatts of power, comparative to that of a small city.
- 4 gigawatts: Total planned power generation capacity
- 7: Number of GE Vernova 7HA gas turbines secured for initial projects
- 90%: Potential carbon dioxide capture rate from planned carbon capture technology
The high power consumption has imposed limitations on new data centre construction in diverse locations such as Dublin, Singapore and certain parts of Virginia.
Announcements by President Trump about sizable data centre investments have been followed by an announcement from Chevron, GE Vernova, and investment firm Engine No 1.
They propose building power generation plants directly linked to data centres across the United States.
Building the foundation for enhanced power supply
This joint venture has secured an agreement to procure seven GE Vernova 7HA gas turbines which will anchor the development of what the companies call "power foundries".
These plants will produce electricity from natural gas and directly supply it to adjacent data centres, circumventing usual power infrastructure weaknesses.
Plans cover installations across three major US regions—the Southeast, Midwest and West.
By eliminating the need for traditional grid transmission, the partnership avoids further burdening the existing systems and enhances reliability.
Preparing for the future with green integration
The total capacity aimed for these installations is four gigawatts, roughly equivalent to the energy consumption of about 3 to 3.5 million US households.
The power foundries include features for eventual building in of carbon capture and storage technologies, which could eliminate more than 90% of the carbon dioxide emissions produced by these turbines.
The initiative also makes provisions for incorporating renewable energy sources in the future, although specifics remain under wraps.
Chris James, Founder and Chief Investment Officer of Engine No. 1, says: “Energy is the key to America’s AI dominance. By using abundant domestic natural gas to generate electricity directly connected to data centres, we can secure AI leadership, drive productivity gains across our economy and restore America’s standing as an industrial superpower.”
The shift in data centre power
The venture marks a shift from traditional data centre power sourcing strategies that relied on grid connections prone to capacity limitations, especially in areas with dense data centre clusters.
The new model opts for generating electricity where it's used, enhancing both efficiency and reliability for operators focusing on cloud computing and AI applications.
The rapid advancement in these sectors has propelled the need for robust power infrastructure.
Mike Wirth, Chief Executive Officer and Chairman of Chevron Corporation, says: “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 unrivalled workforce.”
Scott Strazik, Chief Executive Officer for GE Vernova, says: “We are excited to enable the advancement of data centre growth in the US 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 endeavour possible, as the leading US energy manufacturer.”
It's not just these companies - organisations across the United States are looking to upgrade to new power plants.
Amazon, for example, has signed agreements for the construction of new Small Modular Reactors (SMRs) as part of its plan to transition to carbon-free energy.
These investments support two sites and a company that operates in nuclear energy generation.
- Washington State: Amazon has partnered with Energy Northwest to develop four SMRs owned and operated by Energy Northwest. These will have an initial capacity of 320MW, expandable to 960MW
- Virginia: A partnership between Dominion Energy and Amazon to explore an SMR project at an existing nuclear power station that will bring at least 300MW of power to the region. Dominion projects power demands to increase by 85% over the next 15 years in Virginia
- X-Energy: This leading SMR developer is receiving investment from Amazon, supporting manufacturing capacity for more than 5GW of future nuclear energy projects using its technology.
Kara Hurst, Chief Sustainability Officer at Amazon, says: “Meaningful climate action requires speed and scale — and Amazon continues to explore carbon-free energy solutions.
“We’ve signed agreements to help develop new nuclear energy projects in the US — including enabling the construction of new Small Modular Reactors (SMRs). These advanced nuclear reactors have a smaller physical footprint and can be built more quickly, allowing them to come online sooner.
"Additionally, our Climate Pledge Fund investment in X-energy will help develop the fuel and technology to advance more than five gigawatts of new nuclear over the next 15 years.
“It all signals another innovative step forward on our path to net-zero carbon by 2040.”
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