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Exxon in Discussions to Power AI Data Centers, CEO Says

2025-10-31

The BareStory

Exxon Mobil is in advanced discussions with power providers and technology companies to supply electricity for artificial intelligence data centers, according to statements made by Chairman and CEO Darren Woods. During a Friday earnings call, Woods said the plan involves using natural gas power plants combined with carbon capture technology.

According to the CEO, the proposal aims to capture 90% of the carbon dioxide emissions from the gas plants that would power the facilities. Woods claimed that Exxon is "probably the only realistic game in town" in the near to medium term for companies seeking low-emission power solutions. He added that the company has secured locations and possesses the necessary infrastructure and technical knowledge for carbon capture, transport, and storage.

The initiative addresses the growing energy requirements of large data centers being built by "hyperscalers" to run AI applications. While many technology companies have utilized renewable energy to offset data center emissions, some are also reportedly looking to natural gas for reliable power.

The companies involved in the discussions with Exxon reportedly include technology firms such as Alphabet, Amazon, Meta, and Microsoft. According to one of the summaries, Meta has a separate existing agreement with utility provider Entergy to power a data center in Louisiana with natural gas.

Left Perspective

  • The company is proposing a low-emission power source for AI data centers.
  • It claims to be uniquely positioned to deliver this solution quickly.
  • The plan targets major technology companies with high energy needs.

Right Perspective

  • Tech firms require massive amounts of reliable power for AI development.
  • Companies are exploring a mix of energy sources, not just one solution.
  • Major industry players are in discussions with traditional energy providers.

How it may affect me

As a U.S. reader:

• This partnership could increase investment in natural gas and carbon capture, influencing future energy markets and the development of low-emission fossil fuel technologies.

• Providing reliable power to data centers may support the stability and future growth of the AI-powered services from companies like Google, Amazon, and Meta.

• The project could set a precedent for powering large industries with natural gas and carbon capture, potentially influencing future environmental policy and energy debates.

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