Has Chevron Found a New Growth Platform?
Chevron has an agreement to sell electricity to Microsoft, showcasing an interesting opportunity for the energy giant.
Has Chevron Found a New Growth Platform?
Overview
One of the knocks against Chevron (NYSE: CVX), and many other oil and natural gas companies, is that they aren't participating in the energy transition toward electricity. That may have changed significantly, as Chevron has just tentatively agreed to provide 2.7 gigawatts of electricity to a Microsoft (NASDAQ: MSFT) data center. Is Chevron suddenly an AI play? Here's what you need to know.
What's really happening between Chevron and Microsoft isn't exactly an electricity deal. Chevron is partnering with GE Vernova (NYSE: GEV) to build a natural gas-powered electric power plant. Assuming the agreement receives final approval, which won't be known until later in the year, it will provide Microsoft with dedicated power at a Microsoft data center under a 20-year agreement.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
