KEY POINTS
- Exxon is negotiating with major tech and energy firms to supply low-emission natural gas for AI data centres.
- The oil giant plans to capture up to 90% of carbon emissions through carbon capture technology.
- The move signals growing pressure on Big Tech to secure reliable and cleaner energy sources for AI growth.
ExxonMobil is in advanced discussions with power producers and leading technology companies to provide energy for artificial intelligence data centres using natural gas facilities equipped with carbon capture systems, according to Chief Executive Officer Darren Woods.
Speaking on the company’s earnings call on Friday, Woods said ExxonMobil is positioning itself as a key player in the push to reduce emissions from the energy-hungry data centres that drive AI operations.
“I’m hopeful that many of these hyperscalers are sincere when they talk about the desire to have low-emission facilities,” he remarked, referring to large-scale operators such as Alphabet, Amazon, Meta, and Microsoft.
“In the near to medium term, we’re probably the only realistic game in town to accomplish that.”
These technology giants are racing to expand their data centre capacities to meet surging demand for AI computing power, which has in turn triggered concerns over energy consumption and carbon footprints.
Exxon’s plan aims to capture as much as 90% of carbon dioxide emissions from natural gas plants used in powering these centres, Woods said. The company has been in contact with utility firms to explore ways of decarbonising existing natural gas infrastructure.
Tech’s energy dilemma deepens as AI demand soars
While the technology industry has largely turned to renewable energy sources such as wind and solar to offset their environmental impact, the growing intensity of AI workloads is forcing a rethink. Several firms are now funnelling investment into nuclear power, while others are reconsidering natural gas as a dependable alternative.
Meta, for instance, recently reached an agreement with Louisiana-based utility Entergy to supply natural gas power for one of its major data centre campuses.
Woods suggested ExxonMobil is uniquely positioned to deliver practical low-carbon energy solutions, noting that the company already has the infrastructure, experience, and technology to capture, transport, and store carbon dioxide effectively. “We’ve secured locations. We’ve got the existing infrastructure, and certainly the know-how,” he said.
Industry analysts view Exxon’s talks as part of a broader energy realignment where oil majors and technology firms find common ground.
With the AI boom showing no signs of slowing, data centres are becoming the backbone of digital economies, and the next big frontier for emission reductions.
If successful, Exxon’s initiative could mark one of the first major collaborations between fossil fuel producers and the tech industry in building a lower-carbon pathway for the next generation of AI innovation.
