As demand for power from AI data centers surges, energy giants ExxonMobil and Chevron are forging ahead with groundbreaking “behind-the-meter” natural gas projects featuring carbon capture — while Microsoft explores similar energy strategies for its AI infrastructure.
🔥 Exxon Plans 1.5 GW Gas Plants with Carbon Capture
ExxonMobil plans to build up to 1.5 GW of natural gas–fired power plants directly powering AI data centers, bypassing traditional utility grids. This allows them to avoid lengthy transmission approvals and deliver electricity faster. The facilities would capture over 90% of CO₂ emissions and sequester them underground — with operations targeted by 2027–2028 Particle News+3Heatmap News+3Hart Energy+3.
⚡ Chevron Partners with Engine No.1 & GE Vernova for 4 GW Build-Out
Chevron has formed a joint venture with Engine No. 1 and GE Vernova to develop up to 4 GW of behind-the-meter gas plants to power data centers across the U.S. Southeast, Midwest, and West by 2027 Axios+4Hart Energy+4Financial Times+4.
💡 Microsoft Weighs Carbon‑Captured Gas for AI Data Centers
Microsoft’s VP of Energy, Bobby Hollis, confirmed the company is evaluating natural gas combined with carbon-capture to fuel its AI data centers — contingent on incentives like the U.S. 45Q tax credit and stable regulatory support Heatmap News+3Illuminem+3Particle News+3.
🌐 Why It Matters
- Skyrocketing AI power demand: AI data centers are consuming vast amounts of electricity, prompting energy companies to innovate solutions beyond intermittent renewables Illuminem+1Financial Times+1.
- Speed to market: Gas plants behind the meter offer quicker deployment compared to new nuclear or utility-connected projects Heatmap News+1Particle News+1.
- Lower-carbon fossil fuel strategy: Carbon capture technologies (CCUS) aim to reduce emissions by more than 90%, though critics worry this may still entrench fossil fuel reliance Hart Energy+1Illuminem+1.
🏗️ The AI-Energy Battleground
- Infrastructure investments are in motion: Exxon’s 1.5 GW and Chevron’s 4 GW projects, sets the stage for major shift.
- Engine No. 1, known for climate activism, signals ESG’s evolving role in energy strategy Axios+2Financial Times+2Axios+2.
- Microsoft’s dual-track approach — investing in both renewables and carbon-captured gas — reflects broader uncertainties in long-term clean energy policy .
Bottom line: The AI revolution is doubling as an energy revolution. With power-hungry data centers driving demand, behind-the-meter gas with carbon capture is emerging as a frontrunner—offering speed, scale, and lower emissions. But as renewables, nuclear, and carbon-capture technologies evolve, the roadmap for truly sustainable energy powering AI remains a dynamic challenge.
