Chevron and Williams Build Gas-Powered Supply Chains for AI Data Centers

Chevron and Williams are building gas-powered supply chains for AI data centers. Chevron's Project Kilby, in West Texas, will deliver approximately 2.67 gigawatts to a Microsoft-operated data center under a 20-year power purchase agreement.

The project is one of the largest co-located natural-gas power and data-center projects in the United States. Energy Forge One, a wholly owned subsidiary of Chevron, signed the agreement with Microsoft on June 22, 2026. The commercial commitment is specific: Microsoft will purchase the facility's electricity under a long-term contract.

Williams is pursuing a broader portfolio, with four behind-the-meter projects totaling 2,032 megawatts, expected to be operational from the second half of 2026 through the second half of 2028. The company has more than $7 billion of power-innovation projects under execution. However, the business case for these projects is not without controversy.