Texas based oil and gas company and owner of the Texaco lubricant brand, Chevron Corporation, recently held its 2025 Investor Day.
At the annual event, the multinational announced its aim to move outside of its conventional integrated oil activities and step into the growing data centre power market.
Described by analysts as a pragmatic initiative focused on returns, Chevron outlined the plan to launch its first artificial intelligence (AI) data centre in West Texas. The project is expected to get underway in 2027, and the company is already in negotiations with a yet undisclosed customer. It anticipates that it will have an investment decision by early 2026.
Producing natural gas, the proposed facility is designed to generate a scalable supply of off-grid energy starting at 2.5 gigawatts, with scope to double output.
Currently, Chevron is among the largest natural gas producers based in the Permian Basin, a location known for high gas volumes that can exceed available pipeline capacity. The oil and gas major seeks to transform its advantage in the region into a situation with strategic gains. The new project in Texas expands Chevron’s strong position while answering increasing power demands issued from large-scale cloud service providers, as power grid constraints in the US become more urgent.
The company started the foundation for its new move at the beginning of the year, when it formed a partnership with the Engine No.1 investment firm and natural gas turbine manufacturing firm GE Vernova. Through this collaboration, seven turbines made in the US were supplied to support facilities in the Midwest, West and Southeast.
