Jan 28 (Reuters) - Energy major Chevron ( CVX ) said on

Tuesday it has signed an agreement with investment firm Engine

No. 1 and GE Vernova ( GEV ) 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 ( GEV ) 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 ( CVX ) 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 ( CVX ) CEO Mike Wirth said.

The projects are also expected to be designed to potentially

integrate lower carbon capture and storage, and renewable energy

resources.