coverage of the Joliet Technology Center in Illinois<\/a>, which follows the same pattern of hyperscale dedicated to AI with massive power.<\/p>\n![\"Mike](\"data:image\/svg+xml,%3Csvg%20xmlns=\")
Mike Wirth, CEO of Chevron. In recent interviews, he argued that \u2018energy has become the main limiting factor for growth\u2019 for AI. Photo: Chevron.
\nWhy Chevron, and Not a Traditional Utility<\/p>\n
The choice of an oil company to deliver electricity has clear logic. According to Mike Wirth, \u201cnobody understands natural gas like we do,\u201d and Chevron already has infrastructure, pipelines, and relationships with producers in the Permian Basin.<\/p>\n
In parallel, traditional utilities like ERCOT (Texas grid operator) take years to release capacity. Therefore, behind-the-meter via Chevron bypasses this queue and delivers power within a timeframe compatible with AI expansion.<\/p>\n
According to analysts, Chevron also benefits for two reasons. The first is to diversify revenue beyond crude oil exports. The second is to position itself as a central player in the energy transition, even via natural gas.<\/p>\n
Engine No. 1, an activist fund that joined Exxon\u2019s board in 2021, plays a financial stakeholder role. In parallel, the fund covered the venture capital side and the thesis of gradual decarbonization via CO\u2082 capture in the long term.<\/p>\n
According to Bloomberg, the agreement follows the pattern of other recent deals: Amazon bought nuclear capacity from Talen in Pennsylvania, Meta closed with Entergy in Louisiana, Oracle\/OpenAI did Project Stargate in Abilene with Crusoe.<\/p>\n
What This Means for the Global AI Race<\/p>\n
The Microsoft Chevron agreement consolidates the thesis that AI is an energy-intensive industry. According to Morgan Stanley, the electrical demand of AI data centers could double by 2030, exceeding the combined consumption of Argentina and Chile.<\/p>\n
The scenario creates a gigantic opportunity for American natural gas. Therefore, Permian Basin producers (Chevron, ExxonMobil, ConocoPhillips, Diamondback) have constant offers to close long-term contracts with hyperscalers.<\/p>\n
According to the Brookings Institution, the electrical race for AI could redraw the industrial map of the US. Cities without generation capacity will be left out of the new digital economy, even if they have technical talent.<\/p>\n
In parallel, the total investment announced in AI data centers in the US exceeded US$500 billion in 2025-2026, according to Goldman Sachs estimates. Therefore, deals like Microsoft-Chevron are small pieces of a much larger movement.<\/p>\n
According to JP Morgan analysts, the next frontier is small modular reactor (SMR) nuclear generation. In parallel, Bill Gates\u2019 TerraPower, NuScale, and X-Energy already have preliminary agreements with hyperscalers for post-2030 deliveries.<\/p>\n
Petrobras FPSO in the pre-salt. Brazilian natural gas production is expected to reach 70 million m\u00b3\/day by 2027, part of which could power AI data centers. Photo: Petrobras.
\nBrazil: Pre-Salt Gas for National Data Centers?<\/p>\n
Brazil has a similar opportunity, but on a different scale. According to Petrobras, national natural gas production is expected to reach 70 million m\u00b3\/day by 2027, with the majority originating from the pre-salt.<\/p>\n
This gas is currently flared offshore, exported raw, or used in complementary thermal generation. Therefore, redirecting part of it to data centers would be strategic.<\/p>\n
According to analysts, Scala Data Centers\u2019 Rio AI City, with 3.2 GW projected, could benefit from local natural gas in partnership with Petrobras. In parallel, this model has not yet been formally announced.<\/p>\n
Brazil\u2019s potential has a climate trade-off. The national electricity matrix is 80%+ renewable (hydro, wind, solar), and adding natural gas via behind-the-meter would increase sectoral emissions.<\/p>\n
In parallel, the renewable advantage gives Brazil an option: to sell \u201cgreen\u201d AI capacity to global clients looking to reduce their carbon footprint. Therefore, Rio AI City explicitly positions itself as \u201c100% renewable\u201d in international marketing.<\/p>\n
Agreement Schedule and Risks<\/p>\n
The first phase of 2.5 GW is expected to come into operation by the end of 2027, according to the schedule released by the companies. In parallel, expansion to 5 GW depends on confirmed demand from Microsoft in subsequent phases.<\/p>\n
The main risks are regulatory. According to analysts, behind-the-meter still faces challenges from utilities (who lose customers) and state regulators (who want to ensure the reliability of the public grid).<\/p>\n","protected":false},"excerpt":{"rendered":"Microsoft, Chevron, and Engine No. 1 announced on April 2, 2026, an exclusivity agreement to build 2.5 gigawatts…\n","protected":false},"author":2,"featured_media":35159,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[420,7829,320,7828],"class_list":{"0":"post-35158","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-microsoft","8":"tag-azure","9":"tag-azure-ai","10":"tag-microsoft","11":"tag-microsoft-ai"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/35158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=35158"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/35158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/35159"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=35158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=35158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=35158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"\"](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/1776965356554.jpeg\"\/)
<\/a><\/p>\n![\"GE](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/chevron-2-turbine.png\"\/)
GE Vernova H-class turbine. The turbines will be standard for the 2.5 GW Microsoft-Chevron project. Photo: GE Vernova.![\"Microsoft](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/chevron-3-azure.png\"\/)
Microsoft Azure data center in Texas. The Microsoft Pecos data center announced in April 2026 will have 2,500 MW. Photo: Microsoft.![\"Mike](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/chevron-4-wirth.png\"\/)
Mike Wirth, CEO of Chevron. In recent interviews, he argued that \u2018energy has become the main limiting factor for growth\u2019 for AI. Photo: Chevron.![\"Petrobras](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/chevron-5-petrobras.png\"\/)
Petrobras FPSO in the pre-salt. Brazilian natural gas production is expected to reach 70 million m\u00b3\/day by 2027, part of which could power AI data centers. Photo: Petrobras.