Energy major Chevron said on Tuesday it has signed an agreement with investment firm Engine No. 1 and GE Vernova to build natural gas-based power plants to run co-located data centers in the U.S.

The announcement comes just a week after U.S. President Donald Trump revealed a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence, aiming to outpace rival nations in the critical technology.

The project will use GE Vernova's natural gas turbines to deliver up to 4 gigawatts of power - enough to power roughly 3 million homes - to data centers located in the U.S. Southeast, Midwest and West regions.

While this would initially not flow through the existing transmission grid, the projects will be designed to sell surplus power to keep costs low and support broader energy demands.

Chevron expects to begin initial service by the end of 2027, with the potential for project expansion beyond the 4-GW capacity.

"President Trump's pro-American energy policies and commitment to energy and AI dominance give us the confidence to invest in projects that will create American jobs and strengthen our national security," Chevron's CEO Mike Wirth said.

The projects are also expected to be designed to potentially integrate lower carbon capture and storage, and renewable energy resources.