Chevron and Microsoft Partner for 20-Year Natural Gas Agreement for AI Data Center
Chevron has signed a 20-year agreement to supply natural gas to a Microsoft data center in West Texas, set to begin operations in late 2028. This project, named Project Kilby, targets significant electricity generation and reflects the energy sector's response to the rising demand for AI infrastructure.
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Chevron has entered a 20-year power purchase agreement with Microsoft to supply natural gas for a new data center in West Texas, named Project Kilby. This facility is projected to generate approximately 2.67 gigawatts of electricity, sufficient for about 2 million homes, with initial power expected by late 2028.
The project will be developed in phases over more than 2,000 acres in Reeves County and is estimated to cost around $7 billion. The power will be generated on-site using gas turbines from GE Vernova and Caterpillar, designed to operate independently from regional transmission systems.
The initiative aims to generate over $10 billion in state and local tax revenue and create nearly 2,000 jobs. The partnership also highlights the energy sector's strategic shift to accommodate the growing electricity demands from AI advancements.
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