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Chevron Taps West Texas for Pioneering Data Center Power Project
12 Nov
Summary
- Chevron's first project to provide natural gas-fired power to a data center
- Facility expected to be operational by 2027, with 5,000 MW capacity
- Partnership with Engine No. 1 secures order for 7 large natural gas turbines
In November 2025, Chevron Corp. is making a bold move into the data center power market, choosing West Texas as the site for its first project to provide natural gas-fired electricity. The company is in exclusive talks with an unnamed data center end-user and anticipates making a final investment decision early next year.
The facility is expected to be operational by 2027 and will have the capacity to generate as much as 5,000 megawatts in the future. This is more than the equivalent of two nuclear reactors and will likely be built separately from the grid to avoid competing with electricity supply for the wider population.
Chevron's venture into this new line of business is driven by the enormous demand for energy that will be needed to power the growing number of data centers being located further away from major population centers. As one of the biggest producers in the Permian Basin of West Texas, Chevron sees an opportunity to capitalize on the region's abundant natural gas resources.
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Key to Chevron's strategy is a partnership with Engine No. 1, the investor that ran a successful activist campaign against rival Exxon Mobil Corp. in 2021. This collaboration has secured an order for seven large natural gas turbines from GE Vernova Inc. to power the data center project.
