Microsoft, Chevron eye major AI power deal

Microsoft, Chevron and investment firm Engine No. 1 have signed an exclusivity agreement to explore a major power supply deal aimed at supporting the rapid growth of AI-driven data centers.

The move highlights how tech giants are scrambling to secure reliable energy sources as demand surges for infrastructure powering generative AI tools like ChatGPT and Copilot, News.Az reports, citing Reuters.

While no final commercial terms have been agreed yet, the potential partnership is expected to focus on large-scale electricity generation projects in the United States.

According to reports, the deal could be linked to a proposed natural gas-powered facility in Texas with an estimated cost of around $7 billion. The plant is expected to generate up to 2,500 megawatts of electricity—enough to support a massive data center campus.

Chevron and Engine No. 1 had already partnered to develop natural gas-based power plants located near data centers, aiming to provide direct and stable energy supply.

The projects are expected to use turbines from GE Vernova, further tying together the energy and tech sectors in the race to scale AI infrastructure.

The explosion of artificial intelligence services is dramatically increasing electricity demand, forcing companies like Microsoft to rethink how they secure power for their operations.

Major data centers require vast and continuous energy supply, making long-term energy partnerships a strategic priority.

The companies emphasized that discussions are still ongoing, and no definitive agreement has been finalized.

Still, the potential deal signals a growing trend: as AI reshapes the tech industry, access to energy is becoming just as critical as access to computing power.

News.Az 

By Aysel Mammadzada