Exxon in advanced talks to power AI data centers with natural gas and carbon capture

Exxon Mobil is holding advanced talks with power providers and technology companies to cut the emissions of AI data centers that rely on natural gas by deploying carbon capture technology, CEO Darren Woods said on Friday.

“I’m hopeful that many of these hyperscalers are sincere when they talk about the desire to have low emission facilities, because certainly in the near to medium term we’re probably the only realistic game in town to accomplish that,” Woods said on Exxon’s earnings call.

Hyperscalers refers to companies such as Alphabet, Amazon, Meta and Microsoft that are building large data centers to train and run AI applications.

Exxon aims to capture 90% of the carbon dioxide emissions emitted by natural gas plants that power data centers, Woods said. The oil major is talking with power companies to decarbonize their plants, he said.

 “We’re pretty advanced in the conversations,” the CEO said.

The tech sector has mostly secured renewable energy to offset the emissions from their data centers, though they are now making major investments in nuclear power as well.

Some companies are turning to natural gas as well as they search for reliable power. Meta, for example, signed an agreement with the utility Entergy in Louisiana to power a data center campus with natural gas.

“We secured locations. We’ve got the existing infrastructure, certainly have the know-how in terms of the technology of capturing, transporting, and storing [carbon dioxide],” Woods said.