It’s not just nuclear projects that are hitting the “selling power to data centers” trend – now oil supermajor Exxon is joining the trend.
In fact, Exxon is planning a large natural gas-powered plant to deliver electricity directly to data centers, incorporating technology that binds more than 90% of its carbon emissions, the New York Times reports.
This would be Exxon’s first power plant not dedicated to its own operations. Carbon capture systems, despite federal subsidies, are still rare and costly, limiting their wider adoption.
CEO Darren Woods said this week, “In the short term, there are very few ways to power these data centers and do it in a way that at the same time minimizes, if not completely eliminates, emissions.”
Dan Ammann, Ex-CEO of Exxon, added: “We are driven by the market demand here. It’s low-carbon, it’s available on an accelerated timeline, and it avoids any network connection issues.”
The tech giants are increasingly willing to pay extra for reliable clean energy, including nuclear power. Here’s Zero Hedge, which we spent most of 2024 documenting numerous tech giants like Google, Meta, and Microsoft, all inking transactions with nuclear generators to ensure data center capacity in the future.
The New York Times adds that Exxon, having secured land and engaged potential customers, plans to launch its gas-powered plant within five years — faster than building new nuclear reactors.
Uniquely, the station would work offline, avoiding long network connection delays. The move highlights how the growth of data centers and AI is transforming the energy sector, pushing Exxon into a company it once avoided.
Chevron could also be next. Its CEO, Mike Wirth, predicts that off-grid electricity projects will become more common, and Exxon is exploring similar ventures aimed at launching a gas-powered plant with carbon capture technology.
Exxon plans to spend $30 billion over six years on emissions reduction and alternative energy while expanding oil and gas production. The company sees the growing demand for electricity from data centers as an opportunity to enter the power business using its expertise in carbon management and pipeline networks.
