Energy company Chevron is partnering with Engine No. 1 and GE Vernova to create natural gas power plants in the United States that will be linked to data centers in order to support increased demand for electricity at these centers, particularly for the development of artificial intelligence.
The joint venture is looking to create a multi gigawatt-scale co-located power plant and data center.
The announcement comes as Chinese tech startup DeepSeek ’s new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. In AI development, with many users flocking to test the rival of OpenAI’s ChatGPT.
The launch of DeepSeek’s AI assistant made Wall Street tech superstars’ stocks tumble, along with those of some energy companies. Observers are eager to see whether the Chinese company has matched America’s leading AI companies at a fraction of the cost.
Last week President Donald Trump signed an executive order on AI that will revoke past government policies his order says “act as barriers to American AI innovation.” He also talked up a joint venture investing up to $500 billion for infrastructure tied to AI by a new partnership formed by OpenAI, Oracle and SoftBank.
The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum.
Chevron, Engine No. 1 and GE Vernova said Tuesday that their first projects, called “power foundries,” are expected to leverage seven American made GE Vernova 7HA natural gas turbines. The projects are expected to serve co-located data centers in the Southeast, Midwest and West regions of the country. The venture has yet to select the sites.
The companies said that power generation is not designed to flow initially through the existing transmission grid, reducing the risk of raising electricity prices for consumers.
The joint development plans to deliver up to four gigawatts, equal to powering 3 million to 3.5 million U.S. Homes, with initial in-service targeted by the end of 2027 and the potential for project expansion beyond that.
“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,” Chris James, founder and chief investment officer of investment firm Engine No. 1, said in a statement. “This partnership with Chevron and GE Vernova addresses the biggest energy challenge we face.”
