Microsoft Secures 20-Year Power Deal with Chevron for 2.67GW Texas Data Center
MSFT•Microsoft signed a 20-year deal with Chevron to build Project Kilby, a 2.67 GW power plant next to its West Texas data center. The plant will supply direct low-cost energy via GE Vernova and Caterpillar Solar Turbines, boosting Azure reliability and generating over $10 billion in tax revenue.
1. Microsoft-Chevron Power Agreement
Microsoft has signed a 20-year power purchase agreement with Chevron’s Energy Forge One to provide dedicated energy for its new West Texas data center, formalizing co-development of Project Kilby and securing long-term capacity for cloud operations.
2. Project Kilby Infrastructure
Project Kilby will be built in phases to reach 2.67 gigawatts using GE Vernova turbines and Caterpillar Solar Turbines. Located adjacent to the Reeves County data center, it will deliver power directly, reducing strain on the regional grid.
3. Strategic Benefits and Economic Impact
The direct low-cost power supply is designed to enhance Azure reliability and lower energy expenses. The project is expected to generate over $10 billion in local tax revenue, support around 2,000 jobs and use brackish water for plant operations.
