Chevron Advances Plans to Develop US Data Centers with Power Generation

Chevron Eyes Data Centre Power Demand, Enters Permitting and Engineering Phases

Chevron Enters Permitting and Engineering Phases for Data Centre Development

Chevron is advancing plans to tap into data centre power demand, with the oil major recently entering the permitting and engineering phases for multiple US sites to develop the centres and the electricity to supply them, according to a company executive.

US Data Centre Energy Demand to Triple in Three Years

Energy use for US data centres, which are essentially giant server warehouses, is expected to triple in the next three years as the race to expand artificial intelligence intensifies.

Big Tech’s Power Purchase Deals

Big Tech has struck unprecedented power purchase deals to quickly access vast quantities of electricity, including buying directly from nuclear power plants and inking agreements with utilities to bring power generation to the grid.

Upending the Power Industry

That growth – and the need to access vast amounts of electricity fast – is upending the country’s power industry, which is seeing record peak demand after dismal growth over nearly two decades, and giving new rise to natural gas consumption.

Big Oil’s Entry into Data Centre Power Generation

And Big Oil is tapping into that growth. Chevron and ExxonMobil last year announced plans to begin power generation, largely using the natural gas that they produce, for data centers for the first time. The most significant power generation by the oil majors has historically been used for their own operations.

Chevron’s Plans for Data Centre Power Generation

"The customer interest is high," said Daniel Droog, vice-president of power solutions at Chevron. "It’s really trying to intersect where they have that level of need because they are building new or expanding facilities, at a rate that’s ahead of the power supply."

Data Centre Size and Power Requirements

Many new data centers, which were typically around 20 gigawatts (GW), are being built 50 times their traditional size and requiring as much around-the-clock electricity at a single location as an entire mid-sized city.

Chevron’s Future Plans

Chevron is targeting the development of data center sites and power plants that are around 1 GW in capacity and targeted to come online in 2027 or 2028, Droog said. "We are really focused on scale, speed, and reliability."

Natural Gas and Renewable Energy Options

Chevron’s data centers are not expected to be connected to the grid and would be primarily powered by natural gas. Some sites are being looked at for carbon capture additions and others may include a buildout of renewable power. Natural gas, which had been avoided by Big Tech in various climate pledges over the last several years, has become an increasingly popular option for data center fuel.

Conclusion

Chevron’s entry into data center power generation is a significant development in the energy sector, as the company looks to capitalize on the growing demand for data storage and processing. With its plans to develop data center sites and power plants, Chevron is positioning itself to meet the growing needs of the industry.

FAQs

Q: What is the expected growth of energy use for US data centers?
A: Energy use for US data centers is expected to triple in the next three years.

Q: What are the typical sizes of new data centers?
A: Many new data centers are being built 50 times their traditional size, requiring as much around-the-clock electricity as an entire mid-sized city.

Q: What is Chevron’s plan for data center power generation?
A: Chevron is targeting the development of data center sites and power plants that are around 1 GW in capacity and targeted to come online in 2027 or 2028.

Q: What is the primary source of power for Chevron’s data centers?
A: Chevron’s data centers are primarily powered by natural gas, with some sites being looked at for carbon capture additions and renewable power options.