News Release

E&Ps with natural gas + CCS pave way for model data center development

Exxon, California Resources Corporation and Net Power demonstrate replicable strategy to shoulder massive, anticipated load growth

byEnverus

CALGARY, Alberta (Feb. 5, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has developed new capabilities to help site data centers using data sets focused on onshore fiber cables, substation withdrawal capacity and locational marginal pricing. With data center load growth being a key topic in the energy space, and combined with the company’s extensive carbon capture and storage (CCS) and gas market expertise, EIR is uniquely positioned to provide insights into using natural gas power with CCS for data center development.

In a recent report, EIR leveraged these capabilities to evaluate the potential behind a joint project announcement from Exxon (XOM), California Resources Corporation (CRC) and Net Power (NPWR) regarding natural gas power with CCS paired with data centers, and paints the opportunity other E&Ps looking to profit off the data center hype should look to target.

“EIR forecasts a 12 gigawatt increase in load from 2024-2030 due to the expansion of data centers. E&Ps such as XOM and CRC have responded with recent announcements on natural gas power with CCS to take advantage of lucrative power purchase agreements by providing reliable, clean, baseload power that aligns with their core business and expertise,” said Jeffery Jen, analyst at EIR and report author.

“Leveraging EIR’s expertise in the power markets, data center siting and CCS, we have outlined the strategies of XOM’s behind-the-meter solution, as well as a potential location where EIR believes XOM is developing this project. We also analyze CRC’s partnership with NPWR to provide insight to other E&Ps looking to capitalize on data center buildout momentum. And we believe this model, a natural fit for all three parties, can be replicated for many other E&P companies and potential data site locations,” Jen said.

Key takeaways from the report:

  • Many North American gas producers are looking to leverage their natural gas, land and sequestration capabilities to supply data centers with low-carbon power in the form of natural gas generation with CCS. However, only XOM and CRC have acted through partnerships or disclosed projects.
  • EIR has identified prospective areas with contiguous acres near existing fiber-optic cables, natural gas pipelines and green CO2 pipelines.
  • Other operators looking to capitalize on data center buildout should follow strategies of prioritizing large land positions with access to fiber, natural gas pipelines, CO2 infrastructure, supportive power pricing environments and constrained grid capacity.

EIR’s analysis pulls from a variety of Enverus products including Enverus Congestion Analytics, Enverus Suitable Land Analytics, Enverus Foundation ® | Power & Renewables and Enverus Infrastructure.

You must be an Enverus Intelligence® subscriber to access this report.

About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

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