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Chevron Chooses West Texas for First Off-Grid Gas Plant to Power AI Data Centers

The company is launching a Permian-fueled power venture to lock in demand from energy-hungry computing.

Overview

  • Chevron said it is in exclusive negotiations with an unnamed data-center customer and aims for a final investment decision early 2026.
  • The planned facility targets initial operation in 2027 and would run independent of the regional grid.
  • Capacity is expected to ramp to about 2.5 gigawatts by its third year, with potential to reach roughly 5 gigawatts.
  • Chevron plans to use Permian Basin natural gas, citing about 3 billion cubic feet per day of output that the project would help monetize.
  • The company announced a partnership with Engine No. 1 and an order for seven GE Vernova gas turbines to secure key equipment.