Exxon Mobil Enters the AI Power Race with a ‘Huge Advantage’

AI infrastructure requires vast amounts of power, and traditional power grids are under pressure to keep up.

Exxon claims a “huge advantage” in building decarbonized, gas-fired power plants for the world’s largest tech firms designed to offer consistent and emission-friendly power.

During a recent earnings call, CEO Darren Woods outlined Exxon’s strategy, emphasizing that while the company has no plans to become a utility provider, its ability to manage carbon capture and storage (CCS) gives it a unique edge.

“But leveraging the end-to-end system that we have for capturing, transporting, and storing CO2 is a huge advantage and brings a lot of value for those who are looking to have decarbonized power and to manage their emissions,” Woods explained.

From Powering Itself to Powering AI
For the first time, Exxon is moving beyond supplying its own oil and gas operations to develop a power plant designed specifically for external sources.
The newly announced plant is expected to capture over 90% of its carbon emissions, significantly lowering emissions. While details on cost and location remain undisclosed, CEO Darren Woods confirmed that site selection is complete, and engineering is already underway.

Timing is everything
With AI leaders like Microsoft, OpenAI, Google, and Meta racing to expand their infrastructure, Exxon aims to have its plant operational by 2028, with full decarbonization by 2029.

Woods explained “We’ll bring this on faster than anybody else in the industry, and we’ll certainly bring it on faster than any other opportunities for decarbonization.”

Exxon isn’t alone in this space. Chevron recently announced a partnership with investment firm Engine No. 1 to construct gas-fired power plants for data centers, set to launch by 2027. These facilities will also integrate carbon capture technology and be strategically located across the U.S.

AI-driven energy demand could surge 20% across the U.S., according to Wells Fargo—creating a high-stakes opportunity for investors betting on the next dominant power source. Despite emerging energy-efficient AI models, such as China’s DeepSeek, Exxon remains confident that demand for low-carbon power will continue rising.