"The approach reflects an emerging shift in how power for AI is being developed, bringing energy supply closer to demand through colocated, behind-the-meter generation to deliver reliability while helping avoid added strain on regional electricity systems."
"Chevron is developing a power plant hub with 2.5 gigawatts of gas-fired power in West Texas-enough to power nearly 2 million homes-and has negotiated for months with potential hyperscaler clients."
Chevron is pursuing a multibillion-dollar project to develop a gas-fired power plant hub in West Texas, capable of generating 2.5 gigawatts of power. This project aims to support AI data centers and could scale to 5 gigawatts by late 2027. Chevron's partnership with Microsoft marks a significant shift for Big Oil, traditionally uninvolved in the power sector. The collaboration aims to enhance energy reliability and efficiency for AI operations while reducing strain on regional electricity systems.
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