Exxon Enters AI Power Race with Data Center Plant

The growing demand for electricity driven by AI is reshaping power and energy markets, with even oil giants like Exxon Mobil joining the fray. Exxon announced plans to build a power plant dedicated to data centers, highlighting the anticipated surge in electricity demand from tech companies over the next decade. One estimate suggests nearly half of new AI data centers may face power shortages by 2027. While Exxon already operates power plants for its internal operations, this new project marks its first venture into supplying power to external customers. The plant, planned to generate over 1.5 gigawatts, will run on natural gas despite Exxon's limited forays into renewable energy. Notably, Exxon intends to implement carbon capture and storage (CCS), aiming to capture and store over 90% of the plant's carbon dioxide emissions. The power plant will not be connected to the grid, sidestepping interconnection delays. Exxon’s strategy document calls it “reliable, fully-islanded power w…