ecosystem is in exclusive negotiations with Chevron and the investment fund Engine No.1 for a agreement long-term for the realization of a gigantic energy complex since Texas Western, intended to feed a large campus of data center. He reports it Bloomberg adding that the proposed natural gas power plant is expected to will cost around 7 billion of dollars and will initially generate 2.500 megawatts of electricity, becoming so one of the largest of its kind in the United States.
"Chevron, Microsoft, and Engine No. 1 have entered into an exclusive agreement regarding a proposed power supply and purchase," the companies said. "Commercial terms have not been finalized, and no definitive agreement exists at this time."
Chevron and Engine No. 1 had already disclosed some details about the proposed power plant, but not the end user. An agreement with Microsoft would guarantee a long-term customer for the electricity produced by the plant and help finance its construction. The project, which could be operational before 2030, still requires tax and environmental approval, as well as finalization of commercial terms.
ecosystem, a long-time supporter of OpenAI, creator of ChatGpt, is stepping up investments in data center construction to compete with rivals like A e Amazon.com for supremacy in artificial intelligence. Access to a reliable basic power supply is proving to be a key challenge, which the partnership between Chevron and Engine No. 1 intends to address through its broad natural gas production in Texas West.
The new generation of data center is built further away from the main population centers and closer to fuel sources, due to their enormous energy requirement. The site chosen by Chevron and Engine No. 1 is located near the town of Pecos, near the Texas-New Mexico border, in the heart of the Permian Basin, the largest oil field in the United States.
This basin produces so much natural gas – a byproduct of petroleum – that it often overloads pipelines. As a result, some of the gas must be burned because it cannot be transported where it is needed, making the region a ideal location for power plantsLandbridge, a large landowner in the area, said at least nine large data center projects have been proposed in North and West Texas in the past two years.
The key to Chevron's push towards theenergy linked to artificial intelligence it was his partnership with Engine No. 1, the investor who led a successful campaign against the rival Exxon Mobil in 2021. The collaboration has ensured a order for seven large turbines natural gas from GE Vernova Inc., where demand is so high that new customers face years-long waiting lists.
The Pecos Power Plant project could begin operations in 2027 and would take three years to reach a capacity of 2.500 megawatts, according to Chevron. This capacity is equivalent to that of more than two standard nuclear reactors, according to the Department of Energy. If successful, the plant could expand to a capacity of 5.000 megawatts.
Registered under the name "Energy Forge One LLC," Chevron has applied for several tax breaks from local authorities in West Texas. Its application for an air emissions permit with the Texas Commission on Environmental Quality was declared administratively complete in October.
