Chevron Advances Plans to Develop U.S. Data Centers with Power Generation

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Chevron is moving forward with plans to develop data centers in the U.S., entering the permitting and engineering phases for multiple sites, according to a company executive. These centers will also feature the generation of electricity, primarily powered by natural gas, to meet the growing demand from data centers across the country. The energy consumption of these facilities, which are large warehouses for servers, is expected to triple in the next three years as the need for artificial intelligence and computing power intensifies.

The Big Tech industry has already begun securing power purchase agreements to meet their massive electricity demands, with some companies buying power directly from nuclear plants or signing deals with utilities to add power generation to the grid. This surge in data center demand is shaking up the U.S. power industry, with record peak demand and a rise in natural gas consumption.

Chevron, alongside ExxonMobil, announced plans last year to start power generation specifically for data centers, marking a departure from their usual focus on supplying energy for their own operations. Daniel Droog, Chevron’s Vice President of Power Solutions, stated at the CERAWeek conference in Houston that there is “high customer interest” in this new venture.

With data centers growing larger—some now requiring 50 times more power than traditional facilities—Chevron is targeting the development of power plants and data center sites with capacities around 1 gigawatt (GW), expected to be operational by 2027 or 2028. Droog emphasized that speed, reliability, and scale are central to their strategy.

The company has not revealed specific customers or the exact locations of these future data centers but indicated that southern, western, and midwestern regions are likely targets. These centers will be primarily powered by natural gas, with some sites potentially incorporating carbon capture or renewable energy sources.

Natural gas, which was previously avoided by Big Tech due to climate concerns, has now become a favored option due to its relatively low cost and availability in the U.S., the world’s largest gas producer. The company is also set to receive seven GE Vernova gas turbines by 2026, to aid in the power generation process.

Indonesia Approves Permits for Five Apple iPhone 16 Models

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Indonesia’s communications ministry has granted telecommunications permits for five models of Apple’s upcoming iPhone 16, marking a significant step towards lifting a previous domestic sales ban. This move follows the issuance of local content certificates for 20 Apple products, including the iPhone 16, last week. However, Apple still requires an import permit from the trade ministry to begin selling the devices locally, according to Indonesia’s industry ministry.

The Indonesian government had previously banned iPhone 16 sales last year, citing Apple’s failure to meet local content requirements, which mandate that products contain a certain percentage of locally manufactured parts. This decision had raised concerns about potential protectionism and its impact on investor confidence in the country.

The five telecommunications certificates cover the following iPhone 16 models: iPhone 16e, iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The issuance of these permits comes shortly after Apple announced more than $300 million in investments in Indonesia, which will fund the construction of plants for manufacturing components and the development of a research and development center.

Apple has not yet responded to requests for comment regarding the permits. However, Dwi Handoko, a senior official from Indonesia’s communications ministry, confirmed that the five permits were issued at Apple’s request.

CATL Reports Slowest Profit Growth in Six Years Amid Price War in China’s EV Market

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Contemporary Amperex Technology Co. Ltd. (CATL), China’s leading electric vehicle (EV) battery manufacturer, has reported a 15% increase in net profit for 2024, marking its slowest growth in six years. The company’s net profit reached 50.7 billion yuan ($7.01 billion), falling short of its projected growth range of 11.1%-20.1%. Meanwhile, revenue decreased by 9.7%, marking its first revenue decline since it began releasing operating figures in 2015.

CATL attributed the revenue drop to declining battery prices prompted by a price war in China’s EV market, which pressured EV makers to reduce component costs. Despite rising sales volumes, lower prices of raw materials like lithium carbonate resulted in a fall in operating income.

For the fourth quarter, CATL reported a 13.6% increase in net profit to 14.7 billion yuan, down from the 26% growth seen in the previous quarter. Revenue for Q4 shrank by 3.1% to 103 billion yuan, marking the fifth consecutive quarterly decline.

The price war in China’s EV market has forced CATL to adjust its battery prices to defend market share. However, the company benefitted from a 17.6% reduction in the cost of its power battery business, outpacing an 11.3% drop in revenue from this segment.

Globally, CATL solidified its position as the dominant player in the EV battery market, extending its market share to 38% in 2024, up from 36% in 2023, according to SNE Research. BYD followed with 15%, while LGES saw its share fall to 10% from 13%.

CATL experienced faster growth in the energy storage system battery market, which accounted for 22.4% of total shipments, up from 19.4% in 2023. The company has also expanded beyond batteries, unveiling a new EV chassis in December and seeking to enter the power grid sector.

Additionally, CATL is investing internationally, with a 7.3 billion euro battery plant in Hungary to supply automakers such as Mercedes-Benz and BMW, along with a jointly-owned battery plant with Stellantis in Spain. The company is also pursuing a listing in Hong Kong to raise funds for its Hungarian plant, aiming to secure at least $5 billion.