Microsoft, Chevron, and investment fund Engine No. 1 announced an exclusivity agreement on March 31 aimed at collaborating on power generation and supply. The partnership comes as technology firms, including Microsoft, seek to secure stable electricity sources for their expanding data centers, which support generative AI services like ChatGPT and Copilot.
In a joint statement, the companies clarified that "no commercial terms have been finalized, and there is no definitive agreement at this time."
The collaboration builds on an existing partnership between Chevron and Engine No. 1, announced last year, to develop natural gas-based power plants adjacent to U.S. data centers. The two firms plan to utilize turbines supplied by electric services company GE Vernova for these projects.
