Chevron said its new power generation plant in west Texas to be co-located with a Microsoft data center in Reeves County will benefit the state’s economy while also mitigating impacts to water resources and the electrical grid. Texas oil companies such as Chevron, Exxon Mobil and Diamondback are branching into electricity generation, “cashing in on AI growth as data centers create surging demand for power.”
Locating the plant powered by Permian Basin natural gas on the same site as the data center enables Chevron to sidestep grid connections and supply it directly with electricity. Chevron also said Monday it plans to use non-potable groundwater sources in its power generation operations. And Chevron also aims to reuse oilfield wastewater as a water source.
Chevron and several partners recently announced the startup of a second produced-water treatment pilot facility in Reeves County designed to produce about 1,000 barrels per day of reclaimed oilfield wastewater.
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