NextEra and Exxon plan major gas data center for a big client

NextEra Energy is partnering with Exxon Mobil to develop a 1.2-gigawatt power plant designed to support a large data center for a potential technology customer, executives told investors on Monday. The plan combines natural gas generation with Exxon’s carbon capture technology aimed at reducing emissions.

NextEra intends to pitch the site to a hyperscaler in the first quarter of 2026. Hyperscalers are major technology firms that operate expansive data centers for artificial intelligence workloads. The company said no agreement with a customer has been signed.

The companies have secured 2,500 acres in the Southeast for the facility. NextEra said the location sits near Exxon’s carbon dioxide pipeline network, which would support the planned capture system.

NextEra shares closed about 3% lower on Monday. Exxon declined to comment on the partnership, but said its projects continue to advance and credited partners that add strategic value.

A person familiar with the matter said the collaboration is governed by a memorandum of understanding and remains in an early phase. Exxon previously announced efforts to develop natural gas solutions tailored to data center operations. In October, CEO Darren Woods said the company was in advanced talks with potential customers and partners on these projects.

NextEra is the largest developer of renewable energy in the United States, but rising electricity needs from data centers are pushing the company to expand its natural gas portfolio. It plans to bring up to 8 gigawatts of gas generation online by 2032 and is developing a pipeline of 20 gigawatts in total.

The company expects to build 15 gigawatts of power for data center hubs by 2035. That includes at least three campuses under development with Google. CEO John Ketchum said some projects will start with renewable energy and storage before shifting to gas generation as demand grows.

Technology companies have largely relied on renewable power and, increasingly, nuclear energy to support data center operations while pursuing corporate climate targets.