Oil Giants Pour Billions into Gas-Powered Data-Center Projects Amid AI Surge

Williams and Chevron are committing billions to build natural-gas plants and pipelines that will power AI-driven data centers, projects that could emit tens of millions of tons of greenhouse gases each year.

In a year of record oil profits, Williams and Chevron are turning to the AI-driven data-center market, announcing multi-billion-dollar investments in gas-fired power plants and dedicated pipelines. BloombergNEF’s latest analysis links the surge in data-center activity to a projected 36 % rise in U.S. natural-gas output by the mid-2030s. Williams is building six behind-the-meter gas plants across the United States, four of which will serve Meta facilities in Ohio, and has also laid a nine-mile pipeline to feed future sites.

Chevron’s flagship project for Microsoft in Texas will deliver 2.67 GW of capacity under a 20-year power-purchase agreement, making it the largest multi-gigawatt deal of its kind. Permit applications indicate the plants could emit as much as 21 million tons of greenhouse gases annually, though both companies argue actual output will be well below those figures. Executives stress that the plants are designed for long-term, data-center-only use, while regulators and environmental groups warn the projects could lock in fossil-fuel reliance and hinder the shift to renewable power.