Chevron to Power Microsoft Data Center with Natural Gas in Landmark Deal
Chevron announced a 20-year agreement to supply natural gas for Microsoft's Project Kilby data center in Reeves County, Texas.
Massive Scale and Energy Demand
The data center is expected to consume nearly 2.7 gigawatts of electricity, equivalent to powering about 2 million homes. Power will come from gas turbines provided by GE Vernova and Caterpillar, located at the data center site.
Project Timeline
Construction has not started. Chevron expects a final investment decision later this year, with power delivery beginning in 2028.
Microsoft's AI Infrastructure Surge
Microsoft is investing $190 billion in capital expenditures this year for data center infrastructure to support artificial intelligence applications, a 61% increase over 2025.
Strategic Shift
Previously, Microsoft invested primarily in renewable energy and, in 2024, invested in restarting the Three Mile Island nuclear plant.