NextEra and Exxon Partner on 1.2GW Gas Plant with Carbon Capture for Data Centers

December 12, 2025

December 2025 Update: NextEra Energy and ExxonMobil announced a partnership on December 8 to build a 1.2GW natural gas plant with carbon capture and sequestration (CCS) dedicated to data center power. The first-of-its-kind facility will capture 90%+ of CO2 emissions. NextEra plans to market the site to hyperscalers in Q1 2026.

TL;DR

NextEra Energy and ExxonMobil are building a 1.2GW gas-fired power plant with post-combustion carbon capture specifically for data center customers. Located near Exxon's Gulf Coast CO2 pipeline network, the facility offers hyperscalers a path to reliable baseload power with dramatically reduced carbon intensity. The gas+CCS model could reshape how data centers approach power, combining gas reliability with near-zero emissions.

What Happened

NextEra Energy, the largest renewable energy developer in the United States, announced a memorandum of understanding with ExxonMobil on December 8, 2025, to develop natural gas power plants with carbon capture technology for data centers.¹

The initial project: a 1.2-gigawatt combined cycle gas plant located in the Southeast, positioned near Exxon's carbon dioxide pipeline infrastructure.² The partners have secured 2,500 acres of land for the facility.

"The partnership combines ExxonMobil's carbon capture and sequestration expertise with Energy Resources' development expertise," NextEra stated in its investor presentation.³

No signed customer agreement exists yet. NextEra plans to market the site to a hyperscaler in Q1 2026.⁴

The partnership announcement is part of NextEra's broader push into data center power. CEO John Ketchum declared "We're in the golden age of power demand" at the company's December investor day, announcing plans to build 15 gigawatts of power generation for data center hubs by 2035.⁵ The company has identified 20 potential data center sites, potentially expanding to 40 by end of 2026.

Why It Matters for Infrastructure

New Power Paradigm: Data centers face a trilemma—they need reliable baseload power, they want low-carbon energy for ESG commitments, and they require fast deployment timelines. Gas with CCS offers all three. Unlike solar and wind, gas provides 24/7 reliability. Unlike traditional gas, CCS captures 90%+ of emissions.⁶

Faster Than Nuclear: SMRs and nuclear restarts grab headlines, but deployment timelines stretch to 2029-2030 at earliest. Gas+CCS plants can be operational in 2-3 years using proven technology. For hyperscalers needing power now, this bridge solution may prove more practical.⁷

Geographic Flexibility: Exxon's 1,300+ miles of CO2 pipeline across Texas, Louisiana, and Mississippi enable CCS-equipped plants across the Gulf Coast region.⁸ This infrastructure advantage could concentrate data center development where capture and storage logistics work best.

Economics TBD: The critical question is cost. CCS adds $30-50/MWh to the levelized cost of electricity versus standard gas plants, according to IEA estimates. Whether hyperscalers will pay this premium for "clean gas" when utility-scale solar runs $20-30/MWh remains unproven at scale.

Power Source Comparison for Data Centers

Gas+CCS fills a specific niche: 24/7 baseload power with low carbon intensity, faster than nuclear, more reliable than intermittent renewables.

Technical Details

Carbon Capture System

ExxonMobil proposes capturing over 90% of CO2 emissions from natural gas combustion using post-combustion capture technology.⁹ The captured CO2 travels via Exxon's pipeline network to permanent geological storage sites.

Exxon's Gulf Coast CCS network represents the world's first large-scale carbon capture and storage system:¹⁰

Power Plant Configuration

The 1.2GW combined cycle gas turbine (CCGT) configuration offers:¹¹

• Baseload reliability: 90%+ availability factors typical for CCGT
• Flexible dispatch: Can ramp to match data center load profiles
• Fast start: Hot start capability in under an hour
• Efficiency: Modern CCGTs achieve 60%+ thermal efficiency

Site Requirements

The 2,500-acre site provides room for:¹² - Power generation equipment - Carbon capture systems (substantial footprint) - Interconnection to Exxon's CO2 pipeline - Potential data center campus co-location - Transmission interconnection facilities

Exxon's CCS Customer Base

The NextEra partnership joins Exxon's growing CCS portfolio:¹³

Exxon estimates data centers and AI could represent up to 20% of the total addressable CCS market by 2050.¹⁴

NextEra's Broader Data Center Strategy

The Exxon partnership is one component of NextEra's aggressive data center push:¹⁵

Google Partnership

• 3 gigawatt-scale data center campuses planned
• 3.5 GW already in operation or contracted
• Includes Duane Arnold nuclear restart (615 MW, operational 2029)
• 25-year PPA signed

Meta Partnership

• 2.5 GW of clean energy capacity
• 11 power purchase agreements
• 2 energy storage agreements
• 4 solar+battery projects in New Mexico
• Online between 2026-2028

Gas Generation Pipeline

NextEra plans to bring up to 8 GW of gas generation online by 2032, with a development pipeline of 20 GW.¹⁶ The company—known primarily for renewables—is leaning into natural gas to meet data center demand that renewables alone cannot satisfy.

What's Next

Q1 2026: NextEra markets the Southeast CCS site to hyperscalers. Watch for Google, Meta, Microsoft, or Amazon announcements.

2026-2027: Front-end engineering and design (FEED) completion for CCS-equipped plant.

2028-2029: Potential commercial operation if customer secured and construction proceeds.

Broader market: If the model proves viable, expect replication across Exxon's Gulf Coast pipeline footprint. Other oil majors (Chevron, Occidental) may pursue similar partnerships.

Will hyperscalers pay a premium for "clean gas" when pure renewables are cheaper per MWh?

Key Takeaways

For infrastructure planners: - Gas+CCS offers baseload reliability with 90%+ carbon reduction - Faster deployment timeline than nuclear (2-3 years vs 5+ years) - Geographic concentration likely along Exxon's Gulf Coast CO2 pipeline - 2,500-acre site could include co-located data center campus

For operations teams: - CCS adds operational complexity vs standard gas plants - CO2 pipeline proximity becomes site selection factor - Monitor NextEra Q1 2026 hyperscaler announcements

For strategic planning: - 15 GW of NextEra data center power planned by 2035 - Gas generation returning as data center power source after years of renewable focus - ESG narrative shifts: "clean gas" with 90%+ capture may satisfy corporate sustainability commitments - Economics premium of $30-50/MWh over standard gas; evaluate against carbon pricing scenarios - Watch Q1 2026 hyperscaler announcements for market validation

References

For data center power solutions across energy markets, contact Introl.