Key highlights
- Chevron, Microsoft and Engine No. 1 entered an exclusivity agreement to negotiate a proposed power generation and electricity offtake arrangement.
- No commercial terms have been finalized and there is no definitive agreement.
- The proposal focuses on co-located, behind-the-meter generation to deliver reliable, always-on power for AI workloads and reduce regional grid strain.
- Parties will refrain from further comment while exclusive negotiations continue and conditions for definitive agreements remain unmet.
AI-driven demand
AI is increasing demand for reliable, always-on power, underscoring the need for energy security and abundant domestic supply.
Exclusivity talks
Chevron, Microsoft and Engine No. 1 have entered an exclusivity agreement to negotiate a proposed power generation and electricity offtake arrangement; no commercial terms or definitive agreement have been finalized.
Project approach
The proposal focuses on co-located, behind-the-meter generation to place supply closer to computing demand, improve reliability for advanced computing and help avoid added strain on regional grids.
Next steps
Negotiations are exclusive and subject to execution of definitive agreements and other conditions, and the parties do not intend to comment further while talks continue.
