Chevron and Williams Bet Big on AI Data Centers
Original: Two Fossil Fuel Companies Are Betting Big on Data Centers
Why This Matters
AI infrastructure growth is creating sustained new revenue streams for fossil fuel companies, with major climate and energy policy implications.
Chevron and Williams are expanding gas-fired power plants and pipelines to power AI data centers, with Williams announcing over $5 billion in investments and BloombergNEF projecting a 36% increase in U.S. natural gas production by the mid-2030s driven partly by data center demand.
Two major U.S. fossil fuel companies, Chevron and Williams, are positioning themselves as key energy suppliers for the AI data center boom. Williams, one of the largest U.S. oil and gas infrastructure firms, is currently building six behind-the-meter gas-fired power plants exclusively for data centers, including four projects serving Meta facilities in Ohio. In mid-July, Williams announced over $5 billion in data center investments, with backing from private equity firm KKR. Chevron has also flagged data center demand as a significant growth opportunity in its investor communications.
According to BloombergNEF, U.S. natural gas production may need to increase by 36% by the mid-2030s to meet demand driven partly by data centers. The climate implications are significant: permit applications for just five of the highlighted gas plants show potential annual greenhouse gas emissions of up to 21 million tons — comparable to Guatemala's total annual emissions, though actual output may be lower. Williams spokesperson Alex Schott stated the facilities are 'designed to operate well below permitted limits.' Critics, including Friends of the Earth's Lukas Shankar-Ross, warn the tech-fossil fuel alliance provides a 'lifeline to an industry that we need to be phasing out.'