Chevron announced a long-term agreement to provide natural gas for Microsoft's Project Kilby data center, which is projected to consume nearly 2.7 gigawatts of electricity, equivalent to the needs of about 2 million homes. The power will primarily be generated by large gas turbines from Chevron's partner GE Vernova, with additional support from Caterpillar.
Although construction has not yet begun in Reeves County, Chevron plans to finalize its investment decision later this year, with the data center expected to start receiving power in 2028. This partnership comes as Microsoft embarks on a significant expansion of its data center capabilities, with a planned $190 billion in capital expenditures for 2026, marking a 61% increase from 2025.
While Microsoft has focused on renewable energy to mitigate carbon emissions, its collaboration with Chevron indicates a strategic shift towards utilizing natural gas to meet its growing energy demands, particularly for AI applications