By Samiat Jan, 29, 2025 Featured

Chevron and GE Vernova Partner to Power AI Data Centers With Natural Gas

Key Takeaways

• Chevron (CVX) and GE Vernova (GEV) have teamed up with investment firm Engine No. 1 to build natural-gas power stations for AI-focused data centers in the U.S.
• The project aims to supply up to 4 gigawatts (GW) of power, with operations expected to begin by the end of 2027.
• The announcement comes amid concerns over AI energy costs, following DeepSeek’s launch of a low-cost AI model, which triggered a selloff in nuclear energy stocks.

Project Details

Chevron and GE Vernova will install seven GE Vernova natural-gas turbines to generate power for AI data centers across the U.S. The initiative is expected to deliver up to 4GW of electricity, which is enough to power between 3 million to 3.5 million homes, according to the companies.

The joint venture aims to support the continued development of AI in the U.S. by ensuring a stable and scalable energy supply. This move is significant given the growing power demands of AI computing and the recent disruption caused by DeepSeek’s AI model, which operates at lower costs and with less advanced chips compared to U.S. competitors like OpenAI.

Market Impact

The announcement follows a sharp decline in AI and energy stocks, triggered by concerns over the high costs of AI computing.

• Nuclear power stocks—previously seen as essential to AI energy needs—suffered steep losses, with Constellation Energy (CEG) and Vistra (VST) each dropping more than 20% on Monday.
• GE Vernova (GEV), which operates a nuclear power division, also fell over 20% on Monday but recovered nearly 2% on Tuesday.
• Chevron (CVX) shares slipped 1% on Tuesday following the partnership news.

With AI development demanding more energy, this partnership could position natural gas as a viable alternative to nuclear power in supporting future AI infrastructure.

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