Chevron Secures 2.7 GW, 20-Year Gas Power Deal for Microsoft’s Project Kilby
CVX•Chevron will supply 2.7 GW of natural-gas-fired power to Microsoft's West Texas Project Kilby over 20 years, starting in late 2028. The partnership with Joulent and GE Vernova turbines comes as Chevron shares fell 12% this month but remain 14% higher year to date.
1. 20-Year Power Supply Agreement with Microsoft
Chevron has agreed to provide natural-gas-fired power to Microsoft's Project Kilby data center in Reeves County, West Texas. The 20-year contract covers up to 2.7 GW of capacity, with initial power deliveries targeted for late 2028 and full build-out extending into the 2030s.
2. Partnerships and Infrastructure Plans
Chevron is teaming with Joulent to construct the power-generation complex using large gas turbines from GE Vernova and Caterpillar equipment at the data center site, leveraging existing Permian Basin natural gas infrastructure. A final investment decision is expected after permitting later this year.
3. Market Reaction and Analyst Sentiment
In premarket trading, Chevron shares rose roughly 1% following the announcement, despite a 12% pullback over the past month; the stock remains up 14% year to date. Of 26 brokerages covering Chevron, 18 rate it a buy or better, while options call/put volume ranks in the 80th percentile over the past year.
