Chevron ($CVX) signed a 20-year agreement to supply natural-gas-fired power to Microsoft ($MSFT) for a proposed West Texas data center. The project, known as Project Kilby, is expected to ramp to 2.67 gigawatts of power capacity and begin supplying electricity in 2028, supporting Microsoft's expanding AI data center buildout.
- Project Kilby is planned for Reeves County, Texas, but construction has not yet started.
- Chevron expects to make a final investment decision by the end of this year.
- The data center is expected to consume power equivalent to roughly 2 million homes.
- Most electricity will come from gas turbines supplied by GE Vernova, with Caterpillar also providing turbines.
- The power infrastructure will be located onsite at the data center.
- Microsoft plans about $190 billion in capital expenditures this year, up 61% from 2025.
Relevant Companies
- Chevron ($CVX) - The deal expands Chevron's role in powering AI-related data center infrastructure.
- Microsoft ($MSFT) - The agreement secures long-term electricity supply for its AI data center expansion.
- GE Vernova ($GEV) - The company will provide large gas turbines for the power project.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
