Chevron’s Energy Forge One subsidiary signed a 20-year power purchase agreement with Microsoft for Project Kilby in West Texas to supply 2.67 GW of gas-fired generation via GE Vernova and Solar Turbines equipment. The project targets mid-teen returns, first power in 2028 and a final investment decision by end-2026.
Chevron’s Energy Forge One LLC signed a 20-year power purchase agreement with Microsoft to develop Project Kilby, a co-located power and data center complex in West Texas. The facility will generate approximately 2.67 GW of dispatchable power using GE Vernova turbines and Caterpillar’s Solar Turbines units.
Chevron expects mid-teen returns and more predictable cash flows less exposed to oil and gas price swings. The project could generate over $10 billion in state and local tax revenue and support around 2,000 jobs, leveraging abundant Permian Basin natural gas.
A final investment decision is planned by the end of 2026, with first power delivery targeted for 2028. The facility will use non-potable brackish groundwater and emissions-control technologies, including selective catalytic reduction to lower nitrogen oxide output.
