Two Fossil Fuel Companies Are Betting Big on Data Centers

Published 6 August 2026 · world

It’s been a banner year for oil and gas companies. Some of the world’s biggest oil giants have announced billions of dollars in quarterly profits

It’s been a banner year for oil and gas companies. Some of the world’s biggest oil giants have announced billions of dollars in quarterly profits over the past two weeks, boosted largely by the soaring price of oil thanks to the conflict in the Middle East. But the artificial intelligence boom is also giving fossil fuel companies a new industry to sell their gas, pipelines, and power plants to: data centers. Two American oil and gas companies, Williams and Chevron, are presenting that demand to investors as a huge win. Data centers are becoming “a big driver for both power and gas demand in the US,” says Ashish Sethia, the global head of commodities and energy at BloombergNEF. The group published a report last week that found that increased demand for natural gas by the mid-2030s, driven partly by data centers, means that the US would need to increase production by 36 percent. The boom could have big climate implications—even when considering projects that aren’t connected to the larger grid.

Just five of the seven data-center-connected gas-fired power plants highlighted in these two companies’ second quarter results could emit as much as 21 million tons of greenhouse gases per year, according to their permit applications. That’s an amount roughly on par with the annual emissions of Guatemala, though the actual emissions may be lower than what’s on the permits. Executives from both Williams and Chevron said on earnings calls that they expect to expand on facilities they are building now for the data center industry for years to come. “The frightening thing about the tech and oil alliance is that this is a lifeline to an industry that we need to be phasing out,” says Lukas Shankar-Ross, deputy director at Friends of the Earth, an environmental nonprofit. While it may not be a household name like Chevron or Exxon, Williams is one of biggest oil and gas infrastructure companies in the US—and it has also created a highly profitable data-center services business.

Last year, Williams announced that it would build a power plant and associated pipeline infrastructure in Ohio solely for use by a data center. Building islanded infrastructure like this, also referred to as “behind-the-meter” power, has become an increasingly popular option for tech companies that don’t want to deal with long wait times to connect to the electric grid or impact consumer electricity prices. Williams is now building six behind-the-meter gas plants for data centers across the country, including four projects serving Meta data centers in Ohio. (Meta declined to comment.) In mid-July, Williams announced more than $5 billion in investments for its data center ventures, including money from private equity giant KKR. Williams’ four power plants that have filed permit applications could, according to those applications, emit up to 9.6 million tons of greenhouse gases per year, which is equivalent to the emissions from more than 22 average natural gas plants, according to the Environmental Protection Agency.