- ExxonMobil plans to provide low-carbon electricity to U.S. data centers by using natural gas and its carbon capture technology, which will capture 90% of CO2 emissions.
- The company aims to capitalize on the growing data center market, with CCS solutions that can be deployed faster than grid-dependent alternatives like nuclear power.
What happened: ExxonMobil to offer carbon capture solutions for data centers
ExxonMobil is entering the data center sector with plans to provide low-carbon electricity for data centers across the U.S. using natural gas and its carbon capture and storage (CCS) technology. The company intends to build facilities that generate electricity for nearby data centers while capturing and storing around 90% of the CO2 emissions produced. ExxonMobil claims its CCS solution can offer competitive, large-scale, low-carbon power on an accelerated timeline.
Already a leader in CCS for industries like steel and ammonia production, ExxonMobil aims to tap into the rapidly growing data center market, driven by increasing demand for AI and cloud services. The company projects that data centers could represent up to 20% of the total CCS market by 2050. ExxonMobil’s solution is designed to be independent of grid infrastructure and utility timelines, allowing for faster installation compared to alternatives like nuclear power. The company is already in the design phase and engaging with potential customers.
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Why it is important
ExxonMobil’s entry into the data center market with its carbon capture and storage (CCS) technology is a significant step towards addressing the environmental impact of the growing digital economy. Data centers, driven by the increasing demand for AI and cloud services, are becoming major consumers of energy, with concerns over their rising carbon footprint. ExxonMobil plans to use natural gas to generate electricity for these centers while capturing and storing up to 90% of the CO2 emissions, offering a cleaner, low-carbon power source.
This move is crucial as it helps mitigate the environmental impact of data centers, which could account for a substantial share of global energy consumption. ExxonMobil’s CCS solutions, already deployed in high-emission industries like steel and ammonia production, can be adapted to data centers, reducing grid dependence and speeding up implementation compared to alternatives like nuclear power. By targeting the data center sector, which could represent 20% of the global CCS market by 2050, ExxonMobil is positioning itself for a key role in the transition to sustainable digital infrastructure.
