Summary of Bloomberg Talks Episode: Chevron Picks Texas for First AI Data Center Power Project

Date: November 13, 2025
Host: Katie (Bloomberg)
Guest: Mike Wirth, CEO of Chevron

Episode Overview

This episode features an in-depth interview with Chevron CEO Mike Wirth, discussing the company’s significant move into the AI-driven data center power sector. Chevron’s first dedicated data center power facility is set to be built in West Texas, leveraging the region’s abundant natural gas resources. The conversation covers the rationale behind the project, Chevron’s broader energy outlook, the implications on global exploration, and how emerging technologies like AI are shaping Chevron’s business.

Key Discussion Points & Insights

1. Chevron’s Entry into Data Center Power Projects

• Background: Chevron announced its first AI data center power facility in West Texas, operational by 2027.
• Rationale for Entering the Sector:
  • Chevron sees a growing demand for data center power due to the AI boom and rising electricity rates.
  • Their approach is to set up an off-grid power solution dedicated to specific AI customers rather than entering the traditional power utility market.
  • Quote:

    “We could see the coming boom in AI and, and the need for more power to support the data center buildout … our project is disconnected from the grid. It will serve only a dedicated customer for AI.”
    — Mike Wirth (01:02)

• Execution & Progress:
  • Commitments include several large turbines, engineering, site acquisition, and permitting.
  • The company’s Investor Day highlighted this new strategic frontier.

2. Strategic Importance of West Texas and Resource Utilization

• Resource Synergy:
  • The Permian Basin site leverages Chevron’s existing natural gas resources, often discounted due to distance from market centers.
  • Quote:

    “Often this gas can be discounted because it’s far away from the market center… To create a demand hub close to where all this gas is and will be for many decades is a way to use that and not need access to all that transport.”
    — Mike Wirth (03:31)

• Infrastructure Advantage:
  • Chevron can more easily build fiber networks than pipelines, making West Texas optimal for locating data centers next to gas sources with direct access to power and communications.
  • Quote:

    “It’s actually easier to build fiber networks than it is pipelines. And so you can locate the data centers close to the gas and the power... Moving electrons is easier than moving molecules.”
    — Mike Wirth (03:52)

3. Expansion and Exploration Strategies

• Increasing Investment:
  • Exploration spending is set to rise by about 50%.
  • Focus regions include South America (Guyana, Brazil), West Africa (Namibia), the Gulf of Mexico, and the Mediterranean.
  • Quote:

    “We've acquired a lot of new acreage around the world... I think over the next several years, you'll see increased exploration activity in all of those.”
    — Mike Wirth (04:31)

• Global Market Dynamics & US Political Influence:
  • The Trump administration is seen as facilitating US oil companies’ international access and negotiations.
  • Quote:

    “I think the Trump administration has played a critical role in opening doors and creating an environment where people are looking to do these kinds of deals.”
    — Mike Wirth (05:17)

4. Energy Outlook: Demand, Pricing, and Resilience

• Demand Projections:
  • Energy demand, especially for oil and gas, is anticipated to grow into 2050; Chevron’s views align now with the latest International Energy Agency scenario.
  • Quote:

    “Demand for energy will only grow into the future. In fact, the International Energy Agency today updated their scenarios… shows demand for oil and gas growing to 2050.”
    — Mike Wirth (06:07)

• Financial Strength and Risk Management:
  • Chevron has increased its dividend 38 consecutive years and boasts resilient free cash flow, even at lower oil prices.
  • Quote:

    “We increased our dividend during COVID when prices were in the teens and went negative for a while... we build a portfolio that will withstand the cycles of this business.”
    — Mike Wirth (07:05)

5. Market Dynamics: Oil and LNG

• Short-term Pressures:
  • 2026 may see downward pressure on oil prices due to increasing OPEC+ supply.
  • LNG faces a different dynamic, with major new projects potentially leading to excess supply and lower spot prices later in the decade.
  • Quote:

    “There’s a period of time when it would appear we’re going to see more supply coming into the market than demand will be able to absorb. That probably results in lower spot prices. That’s the commodity business that we’re in.”
    — Mike Wirth (07:42)

6. The Role of AI and Technology in Chevron’s Operations

• Operational Efficiency and Safety:
  • AI is expected to drive greater safety, reduced emissions, improved productivity, and better exploration success.
  • Quote:

    “We can do with AI to improve our business, to make our business safer, to reduce emissions, to improve asset productivity, to improve efficiency… That story will be rewritten again with AI leading the next leg of that journey.”
    — Mike Wirth (08:36)

7. Leadership and Future Plans

• CEO Commitment:
  • Mike Wirth expresses satisfaction and commitment to staying at Chevron as long as the board allows.
  • Quote:

    “I’m happy. I’ve got a full plate and my plans are to stick around as long as the board will have me.”
    — Mike Wirth (09:14)

Notable Quotes & Memorable Moments

• On AI Power Project Vision:
  “Our project is disconnected from the grid. It will serve only a dedicated customer for AI.” (01:02)

• On U.S. Energy Diplomacy:
  “The Trump administration has played a critical role in opening doors and creating an environment where people are looking to do these kinds of deals.” (05:17)

• On Financial Resilience:
  “We increased our dividend during COVID when prices were in the teens and went negative for a while.” (07:05)

• On AI’s Role Inside Chevron:
  “We can do with AI to improve our business, to make our business safer, to reduce emissions, to improve asset productivity, to improve efficiency.” (08:36)

Segment Timeline

• 00:26–02:03: Chevron’s AI data center power project background, rationale, and progress.
• 02:03–03:45: Strategy for West Texas, natural gas resource use, and infrastructure synergies.
• 03:45–05:17: Global exploration plans, investment, and the influence of U.S. policy abroad.
• 05:17–07:23: Energy market outlook, supply and demand projections, and Chevron’s financial resilience.
• 07:23–08:36: Oil and LNG market dynamics going into 2026.
• 08:36–09:14: AI’s role in Chevron operations and leadership succession.

Conclusion

This Bloomberg Talks episode provides a comprehensive look at Chevron’s strategic pivot into powering the AI revolution, using a proprietary, off-grid approach in energy-rich West Texas. Mike Wirth outlines how leveraging natural resources, adapting infrastructure, and deploying advanced technology like AI are central to Chevron’s evolving business model, all while maintaining resilience amid financial and geopolitical uncertainties. The episode offers unique insights into both Chevron’s future direction and the broader evolution of the energy sector in the face of rapid technological change.