Exxon wants a slice of the AI pie
Matt V
December 17, 2024
AI ENERGY
Exxon Mobil is moving into the tech energy sector with plans for a natural gas power plant to support AI data centres.
This shows the rising electricity demand in the tech world, with nearly half of new AI data centres likely to face power shortages by 2027.
The power plant will produce over 1.5 gigawatts of electricity and will not connect to the grid, avoiding delays caused by grid backlogs.
While Exxon already runs power plants for its own use, this is its first one for outside customers.
The company says it will capture and store over 90% of the plant’s carbon emissions, but it has not revealed the plant’s location.
Here’s what you should know:
Exxon is building a natural gas power plant for AI data centres that won’t rely on the power grid.
The plant will use carbon capture to store 90% of emissions, but this technology is expensive and tricky to run.
Renewables supported by companies like Google and Microsoft are cheaper, faster to set up, and strong competitors.
Big Oil goes data
Exxon plans to finish the plant in five years—much faster than nuclear projects, which won’t be ready until the 2030s.
Meanwhile, renewables are making progress.
Google’s $20 billion renewable energy project will start supplying power in 2026, and Microsoft’s $5 billion solar portfolio will begin operating within nine months.
Exxon’s carbon capture technology faces hurdles. It is costly and has had mixed success on fossil fuel plants, with no current examples working on natural gas.
Tax credits from the Inflation Reduction Act could help offset costs, but achieving reliable large-scale carbon capture is still unproven.
For instance, a Canadian plant promised to capture 90% of emissions but only managed 60% after nearly 10 years.
With renewables becoming cheaper and quicker to set up, they remain a strong option for powering the growing tech industry.
AI data centres are demanding power like the Hunger Games out here.