By Mark R. Long

Chevron, GE Vernova and investment firm Engine No. 1 said they were forming a joint venture to power artificial-intelligence data centers with natural gas-fueled electricity.

The joint venture of Chevron, the second-biggest U.S. oil-and-gas company, turbine maker GE Vernova and Engine No. 1 aims to deliver 4 gigawatts of electricity--enough to power up to 3.5 million homes--for data centers starting by the end of 2027.

The rapid development of artificial intelligence requires huge amounts of energy-hungry computing power. Over the past year, this has renewed investor interest in power generators, and even spurred a revival of moribund nuclear power.

The companies' announcement, however, comes a day after shares of a raft of power companies--including GE Vernova--plunged in the wake of Chinese company DeepSeek releasing an AI model that appears to perform on par with peers such as ChatGPT, while using less computing power, and energy.

The companies said the new company's first projects, which they dubbed power foundries, would use GE Vernova turbines to power co-located data centers in the Southeast, Midwest and western U.S.

The projects will be designed to integrate technologies to cut carbon dioxide emissions, such as carbon capture and storage, or CCS, and renewable generation sources.

The companies said a goal was to establish the first multi-gigawatt, co-located power plant and data center of President Trump's second term.

Shares of GE Vernova, which plummeted more than 20% on Monday, rose 6.7% to $352.40 in premarket trading Tuesday. Chevron's stock edged up 0.3% to $157.77.

Write to Mark R. Long at mark.long@wsj.com

(END) Dow Jones Newswires

January 28, 2025 09:04 ET (14:04 GMT)

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