Exxon in advanced talks to power AI data centers with natural gas and carbon capture – CNBC

Exxon Mobil Initiative to Mitigate AI Data Center Emissions Through Carbon Capture Technology

Executive Summary

Exxon Mobil is reportedly in advanced negotiations with technology firms and power providers to implement carbon capture and storage (CCS) technology for natural gas-powered Artificial Intelligence (AI) data centers. This initiative represents a significant multi-sectoral effort to address the escalating energy demands of the technology industry while advancing key United Nations Sustainable Development Goals (SDGs), particularly those related to climate action, industry innovation, and clean energy.

Alignment with Sustainable Development Goals (SDGs)

The proposed project directly contributes to several critical SDGs through its focus on technological innovation and emissions reduction:

• SDG 13: Climate Action: The primary objective is to capture 90% of carbon dioxide emissions from natural gas power plants. This directly addresses the urgent need to combat climate change and its impacts by significantly reducing the carbon footprint of energy-intensive data centers.
• SDG 9: Industry, Innovation, and Infrastructure: By deploying advanced CCS technology, the initiative promotes the development of resilient and sustainable infrastructure. It represents a critical industrial innovation aimed at retrofitting existing energy systems to support the sustainable growth of the digital economy.
• SDG 7: Affordable and Clean Energy: While natural gas is a fossil fuel, integrating it with CCS provides a reliable, lower-emission energy source to meet the immense power requirements of AI. This serves as a transitional strategy towards cleaner energy systems, contributing to the goal of ensuring access to affordable and sustainable energy.
• SDG 17: Partnerships for the Goals: The project is founded on a partnership between the energy sector (Exxon Mobil), the technology sector (hyperscalers such as Alphabet, Amazon, Meta, and Microsoft), and utility companies. This cross-sector collaboration is essential for achieving complex sustainability objectives.

Project Details and Strategic Context

The initiative is a response to the technology sector’s search for reliable and sustainable power sources to fuel the expansion of AI applications.

1. Core Technology: The project will utilize carbon capture, transport, and storage technology to decarbonize natural gas power generation.
2. Target Stakeholders: Discussions are underway with “hyperscaler” technology companies and power utility providers.
3. Emission Reduction Target: The stated goal is to achieve a 90% capture rate of CO2 emissions from the targeted power facilities.
4. Market Position: Exxon Mobil CEO Darren Woods stated that for near-to-medium-term, low-emission power solutions for this sector, his company is “probably the only realistic game in town,” citing Exxon’s existing infrastructure, locations, and technical expertise in CCS.

Industry Power Demand and Solutions

The rapid growth of AI has created an unprecedented demand for energy, prompting technology companies to explore a diverse portfolio of power solutions.

• Current Strategies: Major technology firms have primarily invested in renewable energy sources to offset data center emissions and are increasingly exploring nuclear power.
• Emerging Reliance on Natural Gas: For reliable, baseload power, some companies are turning to natural gas. An example is Meta’s agreement with Entergy to power a data center campus in Louisiana with natural gas.
• Exxon’s Proposed Solution: The CCS initiative offers a pathway to utilize the reliability of natural gas while substantially mitigating its environmental impact, aligning with the sustainability commitments of major technology corporations.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article discusses the significant energy requirements for AI data centers. It addresses the challenge of powering this infrastructure by exploring ways to make a fossil fuel source (natural gas) cleaner through carbon capture technology, thereby connecting to the goal of providing cleaner energy solutions.

• SDG 9: Industry, Innovation, and Infrastructure

  The core of the article revolves around industrial innovation—specifically, the deployment of carbon capture technology. It describes a plan to upgrade energy infrastructure (natural gas plants) to make it more sustainable and environmentally sound, which directly aligns with this goal.

• SDG 13: Climate Action

  The primary motivation for the initiative described is to combat climate change. By aiming to “cut the emissions of AI data centers” and “capture 90% of the carbon dioxide emissions,” the project represents a direct and tangible action to mitigate greenhouse gas emissions.

• SDG 17: Partnerships for the Goals

  The article explicitly details a multi-stakeholder collaboration. The “advanced talks” between Exxon Mobil (an energy company), “hyperscalers” like Microsoft and Meta (technology companies), and power providers exemplify the private-private partnerships needed to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 7: Affordable and Clean Energy

   • Target 7.a: “By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology.”
     
     Explanation: The article describes a partnership between Exxon Mobil, technology companies, and power providers to deploy an advanced “cleaner fossil-fuel technology” (carbon capture). This collaboration to invest in and implement cleaner energy infrastructure for data centers directly reflects the aim of this target.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and processes, in accordance with national capabilities.”
     
     Explanation: The plan to apply carbon capture technology to natural gas plants that power data centers is a clear example of retrofitting an industry to make it more sustainable. The goal is to adopt a “clean and environmentally sound technology” to reduce the carbon footprint of digital infrastructure.

3. SDG 17: Partnerships for the Goals

   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.”
     
     Explanation: The article highlights a significant private-private partnership. The “advanced talks” between Exxon Mobil, hyperscalers, and power companies to achieve a shared goal of “low emission facilities” is a direct manifestation of the multi-stakeholder collaboration this target seeks to promote.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 9.4

   • Indicator Mentioned: Percentage of CO2 emissions captured.
     
     Explanation: The article provides a specific, quantifiable metric to measure the effectiveness of the technology. CEO Darren Woods states that “Exxon aims to capture 90% of the carbon dioxide emissions emitted by natural gas plants.” This percentage serves as a direct performance indicator for making the infrastructure more sustainable.

2. Indicator for Target 17.17

   • Indicator Implied: Number and status of cross-sectoral partnerships.
     
     Explanation: The article implies that progress can be measured by the formation and advancement of partnerships. The statement that Exxon is in “pretty advanced in the conversations” with power providers and tech companies indicates progress toward establishing these collaborations. The mentioned agreement between Meta and Entergy is another example of such a partnership being realized.

3. Indicator for Target 7.a

   • Indicator Implied: Deployment of cleaner fossil-fuel technology.
     
     Explanation: Progress towards this target can be measured by the successful deployment and scaling of the carbon capture technology described. The article implies that the number of data centers or power plants that adopt this solution would be a key indicator of promoting and investing in this cleaner energy technology.

4. Summary Table of Findings

Source: cnbc.com