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Chevron to build first Texas power plant for AI data center

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Published  November 12, 2025 5:45pm CST
Technology
FOX 7 Austin
Chevron_1493856660472_3265638_ver1.0.jpg article

The Brief

    • Chevron announced plans for a new West Texas power project to supply energy to an unnamed AI data center by 2027.
    • The 5,000-megawatt, natural gas–fired facility marks Chevron’s first move into powering AI infrastructure.
    • Executives say the project reflects Chevron’s "early-mover advantage" in providing energy for the fast-growing artificial intelligence sector.

TEXAS - Chevron is planning their first steps into the AI production world with a power project in West Texas, they announced Wednesday.

New Chevron AI power project

What we know:

The announcement came as a part of Chevron Corporation's investor day in New York on Wednesday. 

As a part of their five-year plan, Chevron said they intend to have first power at the data center by 2027. 

An intention they set for this time period is to "advance power solutions for AI data centers," their newsroom release says. According to Bloomberg, the company expanded on this to say the center will be natural gas fired. 

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The center is a part of Meta's journey toward AI "superintelligence."

Chevron is in exclusive talks with the end user of the center, Bloomberg said, and they plan for an output capacity of 5,000 megawatts. 

What we don't know:

The AI company whose center will be powered by Chevron's project has not been named at the time of publishing. 

Competitive returns for evolving market

What they're saying:

"Our disciplined approach to investing in new energies positions us to deliver competitive returns and keep pace with the evolving market," said Jeff Gustavson, president of Chevron New Energies. "We are excited about our new power business, where we have an early-mover advantage and look forward to providing the power required to support U.S. leadership in Artificial Intelligence."

Data centers in Texas

Dig deeper:

West Texas is no stranger to AI data centers. In October, Meta announced their plans to invest $1.5 billion in El Paso for their own center. 

The data center, which will be the company's 29th, will be capable of scaling to 1GW, and is planned to help Meta deliver top-tier AI models as they "build toward superintelligence." It will be Meta's third center in Texas.

While data centers are notoriously "water expensive," Meta says this center aims to restore 200 percent of the water it consumes to local watersheds. The closed-loop, liquid-cooled system in the new center is set to use zero water for the majority of the year.

The Source: Information in this report comes from Chevron and Bloomberg.

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