Exxon Mobil and NextEra Energy announced a partnership to construct a 1.2‑gigawatt natural‑gas‑powered power plant that will supply electricity to a future hyperscaler data‑center site. The plant will use Exxon’s proprietary carbon‑capture system, which is designed to capture more than 90 % of CO₂ emissions, and will be built on a 2,500‑acre site in the southeastern United States near Exxon’s existing carbon‑dioxide pipeline network acquired through the Denbury acquisition.
Construction is slated to begin in 2026, with the plant expected to reach commercial operation by 2028. The project will create a new revenue stream for Exxon’s upstream and midstream assets while giving NextEra a foothold in the rapidly expanding data‑center power market, which is driven by artificial‑intelligence workloads that demand large, reliable, and low‑carbon electricity.
The partnership positions Exxon to tap a high‑growth market while leveraging its carbon‑abated power technology. By combining natural‑gas generation with advanced carbon capture, the plant can deliver power faster than traditional grid‑connected projects and with a lower carbon footprint than conventional natural‑gas plants. For NextEra, the deal expands its portfolio beyond renewables into dedicated, high‑capacity generation for large industrial customers.
While the announcement did not disclose a specific investment amount, industry estimates place the project cost at roughly $3–$4 billion. The partnership will also involve shared operational responsibilities: Exxon will provide the gas supply and carbon‑capture technology, while NextEra will manage plant construction, operations, and integration with its existing gas infrastructure.
The market reaction has been mixed. Some investors view the natural‑gas reliance and ESG implications with caution, while others see the strategic opportunity presented by AI‑driven data‑center demand. The partnership has been described by Exxon’s CEO Darren Woods as a key step in enabling “carbon‑abated power” for the digital economy, and by Dan Ammann, President of Exxon’s Low‑Carbon Solutions, as a “unique position to provide low‑carbon power at large scale on a very competitive and accelerated timeline.” John Ketchum, CEO of NextEra, called the collaboration “nothing short of transformational.”
The deal underscores a broader industry trend of energy companies partnering with technology firms to secure power for data‑center operations, and it signals Exxon’s intent to diversify beyond traditional oil and gas while maintaining a focus on low‑carbon solutions.
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