How Chevron and GE Vernova are Tackling AI's Power Hunger
Data centres throughout the United States are bracing for a significant upsurge in electricity demands as advanced technologies such as artificial intelligence (AI) place immense pressure on existing power grids.
According to Gartner, by 2027, 40% of AI operations may be curbed by power shortages, with data centres experiencing a sharp 160% rise in power usage over the next couple of years tied to generative AI workloads.
Conventional power grids are often not equipped to handle this heightened demand, as some AI facilities now need more than 200 megawatts — equivalent to the consumption level of a small city.
This has resulted in a moratorium on new data centre construction in several regions like Dublin, Singapore, and parts of Virginia.
- 4 gigawatts: Total planned power generation capacity
- 7: Number of GE Vernova 7HA gas turbines secured for initial projects
- 90%: Potential carbon dioxide capture rate from planned carbon capture technology
In response, and buoyed by announcements from President Trump about major investments in data centres to fulfill the power requirements stipulated by AI technologies, companies such as Chevron, GE Vernova and investment firm Engine No. 1 have begun constructing power generation facilities directly connected to data centres across the country.
Redefining power supply with GE Vernova
A crucial agreement secures seven GE Vernova 7HA gas turbines for the newly termed 'power foundries'.
These facilities will harness natural gas to produce electricity, which will be directly supplied to adjoining data centres, hence bypassing traditional power transmission networks.
Expected to cover the Southeast, Midwest and the West, this setup avoids loading the already strained grid systems.
The initiative promises a hefty four gigawatts of generation capacity, equating the daily electricity consumption of about 3 to 3.5 million US households.
These plans are adaptable for future integration of carbon capture and storage technologies, potentially eliminating over 90% of carbon emissions.
"Energy is the key to America’s AI dominance," Chris James, Founder and Chief Investment Officer at Engine No. 1, says.
"By using abundant domestic natural gas to generate electricity directly connected to data centres, we can secure AI leadership, drive productivity gains across our economy and restore America’s standing as an industrial superpower.”
Impact and scope of new power strategies
Forgoing traditional grid connections, these power foundries will generate electricity at the site of consumption.
This model responds to the burgeoning needs of sectors reliant on robust data management like cloud computing and AI, safeguarding them against power unreliability.
Mike Wirth, Chief Executive Officer and Chairman of Chevron Corporation, says: “We are proud to play our part in bringing to fruition President Trump's vision for a new American golden age, powered by our enormous energy resources and unrivalled workforce.”
Future goals and expansion plans
The project gears up for operation by the end of 2027 with an eye on future expansions beyond the initial 4GW mark.
The design includes potential grid connections to sell excess power. GE Vernova will manufacture the turbines, merging its prowess in power, wind and electrification to support this ambitious undertaking.
Scott Strazik, Chief Executive Officer for GE Vernova, says: “We are excited to enable the advancement of data centre growth in the US by supporting delivery of critical power needs to customers using innovative solutions.
"GE Vernova is uniquely positioned to provide the energy systems and support required to make this large-scale endeavour possible, as the leading US energy manufacturer.”
Positioned as a power supply revolution in the data industry, this development is set to create numerous jobs and fortify national energy security, fuelled by domestic resources and innovative strategies.
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