Chevron and Microsoft Sign 20-Year Power Purchase Agreement for AI Data Center
Chevron has partnered with Microsoft to supply electricity for a new Texas data center under a 20-year PPA. This agreement, part of Project Kilby, aims to generate approximately 2.67 GW of power, marking a strategic shift for Chevron towards sustainable energy solutions.
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Chevron has entered a 20-year take-or-pay power purchase agreement with Microsoft to supply electricity for a new data center in Texas, generating approximately 2.67 gigawatts (GW) of power through advanced natural gas-powered turbines. The project, part of Project Kilby, will utilize natural gas sourced from Chevron's Permian Basin fields, repurposing flared gas into energy.
Scheduled to commence operations by 2028, the modular design allows for capacity additions. This agreement provides Chevron with a stable revenue stream insulated from commodity price volatility while addressing the rising energy needs of data centers driven by AI technology growth. Investors should monitor Chevron's strategic moves in the energy market closely.
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