Chevron (CVX) is progressing on its plans to develop data centers in multiple sites in the US, Reuters reported Friday, citing Daniel Droog, the company's vice president of power solutions.

The energy company recently entered permitting and engineering phases for its US data center projects, including the necessary electricity to supply the sites, according to the report.

Droog said in an interview that customer interest was high in the projects. "It's really trying to intersect where they have that level of need because they're building new or expanding facilities, at a rate that's ahead of the power supply," he said at the CERAWeek conference in Houston.

Chevron is aiming to develop data center sites and power plants that are around 1 gigawatt in capacity, targeting to bring them online in 2027 or 2028, Droog said. The company is targeting regions for data centers that include the South, Midwest and western interior, he added.

The data centers are not expected to be connected to the grid and would be mainly powered by natural gas. Some sites could have carbon capture additions, while others may include renewable power, according to the report.

CVX shares were up almost 2% in recent trading.

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