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Chevron Picks West Texas for First Gas-Fired Power Project for an AI Data Center

The company says it is in exclusive talks with the end user and plans a final investment decision early next year ahead of a 2027 startup.

Overview

  • The facility is expected to operate off the public grid to avoid competing with broader electricity supply.
  • Capacity is planned to reach about 2,500 megawatts by year three, with potential expansion to as much as 5,000 megawatts.
  • Chevron has partnered with Engine No. 1 and placed an order for seven large natural gas turbines with GE Vernova to support the build.
  • The project is designed to monetize abundant Permian Basin gas and meet surging data-center power needs, which government projections say could triple by 2028 to roughly 12% of U.S. electricity use.
  • Chevron’s investor presentation also forecast production growth through 2030 while reducing capital spending and increasing free cash flow about 14% annually over the next five years.