ExxonMobil AI Strategy 2025: Powering Data Centers with Gas and Carbon Capture
ExxonMobil’s Commercial Projects: Pivoting to Power the Global AI Boom
ExxonMobil is executing a major strategic pivot from primarily using artificial intelligence for internal optimization to becoming a commercial energy provider for the AI industry itself. This transition is defined by the development of large-scale infrastructure projects that directly pair its core products, natural gas and carbon capture and storage (CCS), to meet the exponential energy demand from data centers.
- Between 2021 and 2024, ExxonMobil‘s AI initiatives were internally focused on driving operational efficiency. Projects included partnering with Microsoft to optimize Permian Basin production, testing automated drilling rigs with Nabors Industries, and deploying the “Sofia” AI assistant in refineries to improve processes.
- Starting in 2025, the strategy has shifted to external commercialization, marked by a partnership with NextEra Energy to develop a 1.2 GW natural gas power plant specifically for the U.S. data center sector. This move leverages the company’s new Low Carbon Solutions business to offer natural gas power with integrated CCS, aiming to capture up to 90% of CO2 emissions.
- This dual focus, from optimizing internal drilling to building external power infrastructure, demonstrates a comprehensive adoption of AI. ExxonMobil is not only using AI to enhance its legacy business but is creating a new, high-growth revenue stream by supplying the energy required to run the digital economy.
Analysis of ExxonMobil’s AI and Low-Carbon Investments
ExxonMobil is dedicating substantial capital to both its Low Carbon Solutions business, which underpins its AI power strategy, and direct investments in AI software to accelerate its own digital transformation. The scale of these investments indicates a long-term commitment to building out the infrastructure for a decarbonized energy system capable of supporting high-demand sectors like AI.
Table: ExxonMobil’s Strategic Investments in AI and Low-Carbon Infrastructure
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Low-Carbon Solutions Plan | Dec 2025 (Plan for 2022-2030) | Announced plans to invest $20 billion between 2022 and 2030 in its Low Carbon Solutions business, including CCS and hydrogen. This capital funds the CCS infrastructure essential for its strategy of providing low-carbon power to data centers. | ExxonMobil’s $20B Low-Carbon Bet in 2030 Plan |
| Baytown Refinery Reconfiguration | Aug 2025 | Greenlit a major project to boost production of higher-value products. The project relies on advanced process control and optimization technologies, which are increasingly AI-driven, to enhance efficiency and profitability. | ExxonMobil Greenlights Baytown Refinery Reconfiguration … |
| New Energy Projects | May 2025 | Initiated 10 large energy projects expected to contribute over $3 billion in earnings by 2026. These projects integrate AI and digital technologies to maximize efficiency and returns. | Exxon Mobil plans over $3B in earnings from 10 new … |
| CoLab Software | Mar 2025 | Made a $5.6 million investment to fast-track the development of an AI-powered tool for engineering design and collaboration, aiming to shorten project lead times by up to 30%. | AI tool built in N.L. hopes to see use in the oilfield and … |
| Corporate Capital Expenditure Plan | Dec 2024 (Plan for 2025-2030) | Plans to invest $27-$29 billion in 2025 and $28-$33 billion annually from 2026 to 2030. A significant portion is for technology-enabled projects, including AI-driven efficiencies and low-carbon solutions. | ExxonMobil announces plans to 2030 that build on its … |
| Advanced Recycling Capabilities | Nov 2024 | Announced plans to invest more than $200 million in new facilities that use AI-optimized technology to break down hard-to-recycle plastics into raw materials for new products. | ExxonMobil plans to accelerate ‘advanced recycling’ |
| Pioneer Natural Resources Acquisition | Oct 2023 | Completed a $59.5 billion acquisition, doubling its Permian footprint and acquiring a massive trove of operational data to be leveraged by AI and machine learning for optimization. | ExxonMobil & Pioneer Natural Resources Merger |
| Baytown Low-Carbon Hydrogen Plant | Jan 2023 | Awarded a contract to Technip Energies for its planned low-carbon hydrogen facility, which will produce 1 billion cubic feet of hydrogen per day and capture over 98% of CO2 emissions. | ExxonMobil awards FEED contract to Technip Energies for … |
Mapping ExxonMobil’s Strategic AI Partnerships
ExxonMobil has built a network of partnerships with technology firms, energy companies, and academic institutions to execute its dual AI strategy. These collaborations range from developing new energy infrastructure and AI software to creating specialized hardware solutions like immersion cooling fluids.
Table: ExxonMobil’s Key Partnerships for AI and Digital Transformation
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| NextEra Energy, Google, Meta | Dec 2025 | Announced deals to build infrastructure for the AI boom, including a 1.2 GW natural gas power plant with NextEra to provide low-carbon power for data centers using CCS technology. | NextEra teams with Google, Exxon in massive AI build-out |
| SAP | Nov 2025 | Long-standing collaboration to optimize enterprise solutions, creating harmonized data systems essential for implementing predictive analytics and AI for faster decision-making. | ExxonMobil Is Rewiring Its Enterprise For The Energy Future |
| TechnipFMC | Oct 2025 | Awarded a contract to TechnipFMC, which leverages AI to create “digital twins” of assets, enabling real-time simulation and optimization of operations to improve efficiency and safety. | TechnipFMC Deal With Exxon And AI Moves Fuel Buy Point |
| Cerebre | Aug 2025 | Signed a long-term agreement to accelerate ExxonMobil‘s “Foundational Digital Backbone,” providing a live intelligence map of facilities to enable smarter, AI-driven decisions. | ExxonMobil and Cerebre Sign Long-Term Agreement to … |
| IBM (Guyana Project) | Apr 2025 | Partnered with IBM to integrate data platforms for a new offshore discovery in Guyana, applying AI to seismic analysis to significantly accelerate data interpretation. | AI in Oil and Gas: The Next Strategic Imperative for Energy … |
| CoLab Software | Mar 2025 | Entered into a $5.6 million partnership to expedite development of an AI tool for engineering design, which is being deployed on offshore oil rigs to improve workflows. | ExxonMobil takes CoLab Software’s AI tool out to sea with … |
| UNICOM Engineering | Jan 2025 | Forged a partnership to pioneer next-generation immersion cooling solutions for data centers, addressing heat generated by AI chips by leveraging ExxonMobil‘s fluid dynamics expertise. | UNICOM & ExxonMobil Transform Data Center Cooling |
| Abu Dhabi University | Nov 2024 | Partnered to advance STEM innovation by sponsoring scholarships for students in STEM and AI, fostering a future talent pipeline in a key region. | Abu Dhabi University Partners with ExxonMobil to Advance … |
| Kinaxis | Oct 2024 | Teamed up to co-develop a new supply and demand planning solution for the fuel commodities market, leveraging AI to optimize its global supply chain in real-time. | Kinaxis, ExxonMobil teaming up to develop supply-chain … |
| Intel | Sep 2024 | Entered a multi-year collaboration to develop and certify energy-efficient immersion cooling fluids for data centers, combining fluid technology with server hardware expertise. | ExxonMobil + Intel | ExxonMobil Product Solutions |
| Massachusetts Institute of Technology (MIT) | Nov 2023 | Partnered to design AI-powered robots for detecting natural oil seeps on the ocean floor, helping to reduce exploration risk and improve accuracy in finding new reserves. | AI in Oil & Gas: Data-Driven Energy Solutions |
| Microsoft | May 2021 | Subsidiary XTO Energy collaborates to digitalize Permian Basin operations, using Azure IoT and AI with the aim to increase production by 50,000 barrels per day by 2025. | Microsoft’s Application of AI to Accelerate Oil & Gas … |
Geographic Analysis: ExxonMobil’s North American Focus for AI Power and CCS
ExxonMobil’s AI strategy is geographically concentrated in North America, specifically the United States, to capitalize on the unique convergence of growing data center demand, abundant natural gas resources, and developing infrastructure for carbon capture.
- From 2021 to 2024, the company’s AI applications were tied to its major global production hubs, including the Permian and Bakken shale plays in the U.S. and large offshore projects in Guyana. The $59.5 billion acquisition of Pioneer Natural Resources significantly deepened this focus on the Permian Basin as a center for data-driven optimization.
- Since 2025, the geographic focus has intensified on the U.S. Gulf Coast and other domestic industrial hubs for building out commercial low-carbon infrastructure. The 1.2 GW power plant with NextEra is for the U.S. market, and the carbon storage agreement with Calpine is centered on its Baytown, Texas, facility.
- The United States is the primary theater for this strategy because it hosts the world’s largest concentration of data centers, has vast natural gas reserves to provide reliable power, and offers a regulatory and commercial environment conducive to large-scale CCS project development.
Technology Maturity: ExxonMobil’s Shift from Pilot to Commercial Scale AI and CCS
ExxonMobil has progressed its AI and supporting low-carbon technologies from internal pilots focused on operational efficiency to commercial-scale infrastructure projects designed to capture new markets.
- In the 2021-2024 period, the technology was largely in the pilot and early deployment phase, used to prove value in contained operational settings. Examples include the machine-learning workflow in the Bakken that increased production by over 5% and the testing of fully automated drilling rigs in the Permian Basin.
- Beginning in 2025, the technology application has matured to commercial scale, validated by large-scale project announcements and offtake agreements. The plan to build a 1.2 GW power plant with NextEra and the deal to store up to 2 million metric tons of CO2 per year for Calpine signal a move from internal proof-of-concept to external, revenue-generating services.
- This progression is further validated by investments to scale specific technologies, such as the $5.6 million partnership with CoLab Software to deploy its AI engineering tool on offshore rigs, demonstrating a commitment to integrating these tools into standard operations.
SWOT Analysis: ExxonMobil’s AI and Low-Carbon Power Strategy
Table: SWOT Analysis of ExxonMobil’s Strategic AI Pivot
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Core expertise in managing large-scale energy projects and access to vast operational data from assets like those acquired from Pioneer Natural Resources. | Proven ability to use AI for quantifiable gains (e.g., 5% production boost in Bakken) and establishment of an end-to-end Low Carbon Solutions business with CCS capabilities. | The company validated that its internal expertise in project management and data analysis could be leveraged to create a new commercial offering for the high-growth AI market. |
| Weaknesses | Dependence on a legacy fossil fuel business model and negative public perception regarding CO2 emissions. | High capital expenditure required for CCS and new power plants (e.g., $20 billion low-carbon plan). The pause of the Baytown blue hydrogen project indicates sensitivity to regulatory and market uncertainty. | The strategy directly addresses the emissions weakness with CCS but introduces a new vulnerability related to the high upfront cost and nascent commercial landscape for CCS services. |
| Opportunities | Primary opportunity was using AI for internal cost reduction, targeting $15 billion in savings by 2027. | The explosive energy demand from the AI industry, projected to increase U.S. gas consumption by 10 Bcf/d by 2030. This creates a massive new market for natural gas and CCS services. | The opportunity evolved from internal optimization to external market creation, transforming a core product (natural gas) into a key enabler for the digital economy. |
| Threats | Broad pressures from the energy transition and competition from renewable energy sources. | Direct competition from rivals like Chevron, which is also pursuing gas-to-power projects for data centers. Regulatory hurdles for large-scale projects remain a persistent threat. | The primary competitive threat has become more specific, shifting from the general rise of renewables to a direct race among energy majors to become the preferred power provider for the AI industry. |
Future Outlook: What to Watch in ExxonMobil’s AI Power Strategy for 2026
The most critical action to monitor is the joint marketing of the 1.2 GW low-carbon power plant with NextEra Energy in Q1 2026, which will serve as the first major test of market appetite for ExxonMobil‘s gas-plus-CCS model.
- The success of this marketing effort with hyperscale data center operators will validate the commercial viability of the strategy and likely trigger further investment decisions in similar projects.
- The planned launch of a competing 5 GW power project by rival Chevron in 2027 will establish a key competitive benchmark, indicating whether ExxonMobil can secure a first-mover advantage in this emerging market.
- A decision on whether to restart the paused Baytown blue hydrogen project will provide a strong signal regarding ExxonMobil**’s confidence in the broader low-carbon energy ecosystem, which is complementary to its AI power strategy.
- The release of a new grid efficiency AI product by NextEra and Google Cloud in mid-2026 will provide insight into how large tech clients intend to manage and integrate new, dedicated power sources, shaping the future relationship between energy suppliers and consumers in the AI sector.
Frequently Asked Questions
What is the core change in ExxonMobil’s AI strategy for 2025?
Starting in 2025, ExxonMobil is pivoting from using AI for internal efficiency to becoming a commercial energy provider for the AI industry. The new strategy focuses on building natural gas power plants paired with carbon capture and storage (CCS) to meet the high energy demands of data centers.
How is ExxonMobil making its natural gas power a ‘low-carbon’ solution?
ExxonMobil is integrating its natural gas power generation with its Low Carbon Solutions business. By using Carbon Capture and Storage (CCS) technology, the company aims to capture up to 90% of the CO2 emissions from its power plants, offering a lower-carbon energy source to power-intensive sectors like AI.
Who are ExxonMobil’s key partners in its strategy to power the AI boom?
A key partner is NextEra Energy, with whom ExxonMobil is developing a 1.2 GW natural gas power plant for the U.S. data center market. The text also indicates that tech giants like Google and Meta are involved in these deals as the ultimate consumers of this low-carbon power.
Besides supplying power, how else is ExxonMobil supporting the AI industry?
ExxonMobil is also developing technologies to improve data center efficiency. It has partnered with companies like UNICOM Engineering and Intel to create advanced immersion cooling fluids, which use ExxonMobil’s expertise in fluid dynamics to help manage the immense heat generated by AI chips.
What is the scale of ExxonMobil’s investment in this new low-carbon strategy?
ExxonMobil has announced plans to invest $20 billion in its Low Carbon Solutions business between 2022 and 2030. This capital is fundamental to building the carbon capture infrastructure required for its strategy of providing low-carbon power to data centers.
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