The Trillion Dollar Question: How Oil & Gas Will Power the AI Boom

Artificial Intelligence (AI) is transforming industries at an unprecedented pace, bringing efficiency and innovation across sectors. However, this rapid advancement comes with a significant challenge: AI’s energy consumption is growing exponentially. Data centers, the backbone of AI operations, require immense power, making them some of the world’s largest electricity consumers. As AI expands, so does its energy demand, creating a pressing question - who will power the AI revolution?

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Published on Apr 23, 2025

The Growing Energy Crisis in AI

By 2024, leading technology companies had already committed more than $1 trillion toward AI infrastructure. Apple alone plans to invest $500 billion in AI¹ , while Meta has allocated $40 billion for AI infrastructure in a single year². Microsoft, Amazon, Google, and NVIDIA are also making massive investments in data centers across the US. This wave of capital is accelerating AI development but also putting unprecedented strain on local energy grids. The demand for power is no longer just a tech issue; it has become a national infrastructure challenge.

Traditional renewable energy sources, such as solar and wind, are being explored to meet this rising demand, but their intermittent nature presents challenges in providing the stable and continuous power required for AI workloads. As a result, the oil and gas industry is emerging as an unexpected yet crucial partner in fueling the AI economy.

Oil & Gas: AI’s Unexpected Energy Ally

Oil and gas companies possess the expertise and infrastructure to provide the reliable, dispatchable energy that AI requires. With deep experience in natural gas extraction and power generation, they are uniquely positioned to support data center energy needs. Their vast networks of land, pipelines, and power distribution systems can be repurposed or co-located with AI infrastructure, creating efficient energy solutions. Additionally, advances in carbon capture and waste heat recovery provide pathways for reducing emissions while delivering high-performance computing power at scale.

Industry Moves Toward AI Power Solutions

Major oil and gas companies are already making strategic moves to address AI’s energy challenge. Chevron, in partnership with Engine No. 1 and GE Vernova, is developing gas-fired power plants specifically designed for AI data centers, with the first project set to come online in Texas by 2026. ExxonMobil is building a natural gas-fired power plant in southeast Texas that incorporates carbon capture technology, which is expected to eliminate over 90% of CO2 emissions³ . These initiatives highlight a fundamental shift - energy giants are no longer just producers of fuel; they are becoming infrastructure partners for the digital age.

Beyond the major players, emerging companies are also capitalizing on this opportunity. Crusoe Energy, for example, has secured access to stranded natural gas to power distributed data centers, converting flared gas at oil fields into valuable energy for compute power. Similarly, Houston-based startup Lancium is constructing “Clean Campuses” in West Texas, combining low-cost renewable energy with flexible data center capacity. These developments show that the AI energy market is not just reserved for supermajors; any forward-thinking energy company with vision and assets can participate.

¹ Apple will spend more than $500 billion in the U.S. over the next four years - Apple
² Meta Plans to Spend as Much as $65B in ‘Defining Year for AI’ Says Zuckerberg
³ Exxon Wants To Satiate Power-hungry Data Centers With Natural Gas & Carbon Capture

Strategic Partnerships: The Future of Energy & AI

The convergence of the AI and energy sectors is not just about infrastructure; it is also about people. As the oil and gas industry has undergone cycles of consolidation and layoffs, thousands of skilled engineers and project managers have transitioned into the tech sector. Many have joined AI startups, cloud providers, or infrastructure platforms, bringing deep expertise in industrial systems, energy logistics, and market operations. This shared talent pool is fostering collaboration, allowing both industries to develop innovative solutions that align with the evolving demands of AI computing.

Oil and gas companies have several opportunities to shape the AI energy landscape. By investing in dedicated power solutions for AI data centers, they can monetize stranded gas, optimize land use, and integrate new energy models such as co-located power plants and behind-the-meter generation. Additionally, capturing and reusing waste heat from data centers could lead to more efficient industrial processes and district heating systems. Another critical factor is grid optimization leveraging their knowledge of energy markets, oil and gas companies can provide demand response services, hybrid generation capabilities, and load balancing solutions tailored for AI workloads.

Oil & Gas Companies will save AI Data Centers Billions

Co-locating data centers with natural gas power plants (and other forms of energy) can offer significant cost advantages compared to purchasing electricity directly from the grid.

Where dss⁺ Connects Energy and Intelligence

The Road Ahead

At dss⁺, we help oil & gas companies unlock new possibilities by combining deep expertise in power operations with emerging AI data center requirements. We provide end-to-end support, from Joint Venture structuring and site analysis to implementation and risk management, ensuring a seamless partnership. Our practical sustainability insights help align compute and energy strategies with decarbonization goals. This is a unique opportunity to not just power AI but also reshape how industries collaborate. As AI’s power requirements continue to surge, oil and gas companies must evolve beyond traditional energy supply models. The key to success lies in forming long-term partnerships that go beyond transactional sales. By offering tailored energy contracting models, integrating ESG-focused solutions, and enhancing grid reliability, they can position themselves as indispensable partners in the AIdriven economy.

The AI revolution presents a unique opportunity for oil and gas firms to diversify their revenue streams, enhance their environmental credibility, and solidify their relevance in the trillion-dollar AI Data center build out in the US. For AI companies, access to stable, scalable, and cost-effective energy is crucial. Society as a whole stands to benefit from a more balanced energy grid, reduced emissions, and accelerated advancements in healthcare, science, and technology.

The future of AI and energy is not just about keeping the lights on - it’s about powering the next era of human progress.

Author

Sean Jump

U.S. & Canada Director, Oil & Gas, dss⁺

Sean brings 20 years of experience across the Oil & Gas value chain in multidisciplinary, spanning engineering, business, startups, and technology. A trained Mechanical and Nuclear Engineer with an energy and finance-focused, Sean’s leadership and passion for solving complex problems have helped organizations achieve scalability and competitive growth.

Matthew Govier

Sustainability Director, Americas, dss⁺

Matthew has expertise in Sustainability and ESG Management, helping large Brazilian companies to understand and address their social and environmental risks and opportunities, for example preparing their journey towards decarbonization. He also has expertise conducting cost management and performance improvement programs for large companies, from value generating opportunity identification to implementation and realization of financial impact.