Chevron and Engine No. 1 have announced a strategic partnership to develop scalable and reliable power solutions for U.S.-based data centers using domestically sourced natural gas. This initiative, in collaboration with GE Vernova, aims to establish the first multi-gigawatt co-located power plant and data center, with the first projects expected to launch during President Trump’s second term.

Dubbed “power foundries,” these projects will utilize seven U.S.-made GE Vernova 7HA natural gas turbines, secured through a slot reservation agreement, to accelerate deployment. The planned sites will be strategically located across the Southeast, Midwest, and West regions of the U.S. Rather than relying on the existing transmission grid, these power plants will supply electricity directly to co-located data centers, reducing the risk of higher energy costs for consumers.

The joint initiative addresses the urgent need for affordable and reliable power to meet the soaring energy demands of AI-driven data centers. With an initial capacity of up to four gigawatts—enough to power between 3 to 3.5 million U.S. homes—the first phase is expected to be operational by the end of 2027. Additionally, the partnership envisions expanding capacity in the future.

The projects are designed with flexibility to integrate lower-carbon solutions, including carbon capture and storage (CCS), capable of capturing over 90% of CO2 emissions from the turbines. Renewable energy resources will also be considered to enhance sustainability while maintaining energy security.

Chris James, founder and chief investment officer of Engine No. 1, emphasized the critical role of energy in securing America’s leadership in AI. “By utilizing abundant domestic natural gas to power data centers, we can drive productivity gains, secure AI leadership, and restore America’s position as an industrial superpower,” he stated.

Chevron CEO and Chairman Mike Wirth highlighted the alignment between this initiative and President Trump’s energy policies. “We are proud to help realize President Trump’s vision for a new American golden age, leveraging our vast energy resources and skilled workforce. His pro-American energy policies and commitment to AI dominance give us confidence to invest in projects that create jobs and strengthen national security,” Wirth said.

Scott Strazik, CEO of GE Vernova, expressed enthusiasm about supporting the expansion of data centers with innovative energy solutions. “As the leading U.S. energy manufacturer, GE Vernova is uniquely positioned to provide the systems needed to make this large-scale endeavor a reality,” he noted.

As AI, cloud computing, and digital technologies expand rapidly, the demand for scalable and cost-effective power solutions is growing. This model not only ensures stable power for data centers but also has the potential to sell surplus energy to the national grid in the future. Beyond providing reliable power, the partnership is expected to create thousands of jobs and contribute to the reindustrialization of the U.S.