Chevron confirms talks with Microsoft, Engine No. 1 for possible power pact

Chevron (CVX) issued the following statement regarding an exclusivity agreement with Microsoft (MSFT) and Engine No. 1: “AI is driving significant growth in demand for reliable, always on power, underscoring the importance of energy security and abundant domestic supply. To support that demand, Chevron, Microsoft and Engine No. 1 have entered into an exclusivity agreement related to the negotiation of a proposed power generation and electricity offtake arrangement. No commercial terms have been finalized, and there is no definitive agreement at this time. The approach reflects an emerging shift in how power for AI is being developed, bringing energy supply closer to demand through co-located, behind-the-meter generation to deliver reliability while helping avoid added strain on regional electricity systems. It pairs sustained, always on demand from advanced computing with proven capability to design, build, and operate largescale energy infrastructure. While we are in exclusive negotiations, and subject to the execution of definitive agreements and certain conditions being satisfactorily met, the parties do not intend to comment further.”