plowunited.net – Exxon Mobil and Chevron are actively pursuing opportunities to power artificial intelligence (AI) data centers. Betting that tech companies will increasingly turn to natural gas to meet the substantial energy demands of AI operations. This move reflects a broader strategy by Big Oil to position itself as a critical energy provider for the tech industry.
Exxon recently announced plans to build a natural gas plant specifically designed to power data centers. According to Exxon Chief Financial Officer Kathryn Mikells, the facility will incorporate carbon capture and storage (CCS) technology to reduce its emissions by up to 90%. Mikells highlighted the project’s potential to offer reliable, low-carbon energy, independent of traditional electric grids. Which enables faster deployment compared to conventional power generation methods. While Exxon has not disclosed specific customers or timelines, the company is working with “large-cap industrials” to develop the initiative.
Exxon’s investment in carbon capture technology includes a network of more than 900 miles of pipeline along the Gulf Coast. Designed to transport CO2 from industrial facilities to permanent storage sites. The company estimates that decarbonizing AI data centers could represent up to 20% of its total addressable market for CCS by 2050, making it a significant area of growth.
Chevron is also exploring solutions to power AI data centers, leveraging its expertise as a leading natural gas producer. Jeff Gustavson, president of Chevron’s new energy business. Noted at the Reuters NEXT conference that Chevron’s extensive natural gas infrastructure, power generation capabilities, and vast landholdings position the company to serve this emerging market. Gustavson emphasized Chevron’s readiness to support the tech sector’s energy needs while integrating sustainable practices.
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Tech Giants Eye Energy Innovation for AI Data Centers: Exxon Advocates Natural Gas Over Nuclear
Tech leaders like Alphabet, Amazon, Microsoft, and Meta have increasingly relied on wind and solar power for their data centers. Aligning with goals to reduce their environmental impact. However, the immense energy demands of artificial intelligence (AI) have led these companies to explore more consistent and reliable energy sources.
As renewable energy faces reliability challenges, interest in nuclear power has surged. Microsoft has committed to purchasing power from the revitalized Three Mile Island nuclear reactor. While Amazon and Google are investing in next-generation small modular nuclear reactors. Meta has also sought proposals for building new nuclear facilities. Despite these initiatives, nuclear power projects face long timelines, with small reactors unlikely to be commercially available until the 2030s.
The fossil fuel industry, including Exxon Mobil, argues that natural gas offers a more immediate solution for the tech sector’s growing energy needs. Exxon CEO Darren Woods dismissed nuclear power as a long-term option and emphasized that his company can meet AI’s power demands in the near term. Speaking to analysts, Woods stated that Exxon is uniquely positioned to deliver reliable energy quickly. Leveraging its expertise in managing large-scale projects.
Exxon plans to support early-stage AI growth by installing natural gas-powered generation for data centers. Woods clarified that Exxon does not aim to enter the power generation business permanently. Instead, the company will focus on capturing and storing emissions from these facilities and supplying decarbonized natural gas to meet the growing energy demands of AI operations.
As the tech sector’s appetite for energy continues to expand. Debates over the best energy sources—nuclear, renewable, or natural gas—highlight the challenges of balancing sustainability, reliability, and rapid deployment in an era of transformative technological growth.
