Microsoft, Chevron Plan 2.67 GW Gas Plant as ETF Fee Gap Risks $19,200 Losses
MSFT•Microsoft and Chevron will build a 2.67 GW gas-fired plant in West Texas under a 20-year PPA, emitting over 13 million tons of CO2. MSFT ranks among the Nasdaq-100’s top holdings, where QQQ’s 0.18% fee versus QQQM’s 0.15% can cost investors up to $19,200 over 20 years.
1. 2.67 GW Gas Plant for AI Data Centers
Microsoft and Chevron have committed to develop Project Kilby, a 2.67 GW natural gas power plant in West Texas to supply dedicated electricity to Microsoft’s AI and cloud data centers under a 20-year power purchase agreement. The facility will use two GE Vernova turbines and Solar Turbines units, and could emit over 13 million tons of CO2, challenging Microsoft’s pledge to eliminate carbon emissions by 2030.
2. Nasdaq-100 ETF Fee Gap and MSFT Exposure
Microsoft is a top-ten holding in the Nasdaq-100 index, which both QQQ and QQQM track. A 0.03% annual fee differential between QQQ (0.18%) and QQQM (0.15%) translates to up to $19,200 in additional costs over 20 years on a $1 million position, influencing long-term investor allocations and cost-efficiency considerations.
