Energy Giants Collaborate: NextEra (NEE.US) and Exxon Mobil (XOM.US) Plan to Build 1.2 GW Data Center

Stock News12-09

NextEra Energy (NEE.US) CEO John Ketchum informed investors on Monday that the company is partnering with Exxon Mobil (XOM.US), the largest U.S. oil company, to develop a large-scale data center powered by natural gas for a potential tech client. According to materials presented to investors, the 1.2-gigawatt facility will integrate natural gas generation with Exxon Mobil's carbon capture technology to reduce emissions. The project is slated to target the hyperscale market by Q1 2026. Hyperscale companies are major tech firms building data centers to train and operate AI applications. No agreements have been signed with any hyperscale clients yet. NextEra and Exxon Mobil have secured 2,500 acres for the project, located in the southeastern U.S. near Exxon Mobil's CO₂ pipeline infrastructure. NextEra's stock closed down about 3% on Monday but edged up 0.30% in after-hours trading, while Exxon Mobil rose 0.17%. Exxon Mobil declined to comment on the partnership but stated its "project is progressing, and we appreciate partners adding strategic value." A source familiar with the matter revealed the project is still in early-stage discussions under a memorandum of understanding. The oil giant announced last year it was developing natural gas solutions for data centers. CEO Darren Woods noted in October that Exxon Mobil was in advanced talks with potential clients and partners. NextEra, the largest U.S. renewable energy developer, is expanding into natural gas to meet surging data center demand. The utility plans to bring up to 8 GW of natural gas capacity online by 2032 and is developing a 20 GW pipeline of projects. Ketchum said NextEra aims to build 15 GW of power capacity for data center hubs by 2035, including at least three campuses under development with Google. "Many projects will start with what I call 'transitional energy solutions'—renewables and storage," he noted, "while we also plan subsequent natural gas generation." The tech industry primarily relies on renewables and increasingly nuclear power to meet climate goals for data centers.

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