Strong Demand for AI Power, Mobil Wants a Share of the Pie

After entering the "AI era," electricity is in short supply everywhere, and companies are making efforts, with Exxon Mobil also joining in. On December 12, according to The New York Times, Exxon Mobil plans to build a large natural gas power plant to directly supply power to data centers, marking Exxon Mobil's first non-self-use power plant. Moreover, Exxon Mobil will use advanced technology to capture over 90% of the carbon emissions from the power plant—despite federal subsidies, carbon capture systems remain very expensive. Currently, Exxon Mobil has acquired the land needed for the plant and has engaged with potential customers, planning to initiate construction within five years. Compared to another hot energy source, "nuclear energy," the construction of natural gas power plants is faster. Reports indicate that Exxon plans to invest $30 billion in emission reductions over the next six years while expanding oil and gas production. Analysts believe that Exxon Mobil views the growing electricity demand from data centers as an opportunity for the company to enter the power industry, leveraging its advantages in carbon management and pipeline networks as an energy giant. In recent years, tech giants have become increasingly willing to pay for reliable clean energy. Exxon Mobil CEO Darren Woods stated this week: "In the short term, there are few opportunities to power data centers while maximizing, or even completely eliminating, carbon emissions." Notably, this natural gas power plant by Exxon Mobil will not connect to the grid, avoiding the lengthy delays associated with grid connections. Exxon Mobil executive Dan Ammann stated: "We are responding to market demand; it is low-carbon, can provide power quickly, and avoids the difficulties of grid connection." Analysts suggest that after Exxon Mobil, Chevron may also follow suit, with its CEO Mike Wirth predicting that off-grid power projects will become more common