Two Fossil Fuel Companies Are Betting Big on Data Centers
Fossil fuel companies Williams and Chevron are significantly investing in gas-fired power plants and pipeline infrastructure to meet the growing electricity demands of data centers across the US. This includes projects for Meta data centers in Ohio and a large Microsoft data center in Texas, providing "behind-the-meter" power solutions. The strategy raises considerable environmental concerns due to the projected greenhouse gas emissions from these new fossil fuel facilities, drawing criticism from environmental groups.
Fossil fuel giants Williams and Chevron are making substantial investments in gas-fired power plants and pipeline infrastructure to capitalize on the increasing electricity demands of the US data center industry. This trend, highlighted in recent earnings calls and a BloombergNEF report, positions data centers as a significant driver for power and gas demand, requiring a projected 36 percent increase in US natural gas production by the mid-2030s.
Williams, a major oil and gas infrastructure company, is developing six behind-the-meter gas plants nationwide, including four projects specifically for Meta data centers in Ohio. The company has announced over $5 billion in data center ventures, with investments from private equity firm KKR. These projects, designed to bypass long grid connection times, could emit up to 9.6 million tons of greenhouse gases annually from Williams' four permitted plants.
Chevron is partnering with Microsoft on an even larger 2.67-gigawatt gas-fired power plant in Texas, secured by a 20-year power purchase agreement. This project alone could produce more than 11.5 million tons of carbon-dioxide-equivalent emissions per year. Both companies defend their compliance with environmental regulations while acknowledging the long-term nature of these fossil fuel investments. Environmental groups like Friends of the Earth criticize this "tech and oil alliance" as a setback for renewable energy transition. The Trump administration is also encouraging private power solutions for tech companies to reduce grid impact.