Chevron Eyes More Data Center Deals Amid Record-High Demand

Chevron is exploring more deals to power data centers across the US, following its contract with Microsoft in West Texas. The oil major sees potential for additional projects in West Texas, the Midwest, and the Gulf Coast.

Chevron's president of new energies, Jeff Gustavson, said the company will look at other parts of the country to develop large-scale power facilities to meet growing electricity demand from data centers.

The company has signed an agreement with Microsoft to develop a 2.67 gigawatt natural gas-fired power facility, called Project Kilby, which would provide dedicated electricity to the tech giant's data center campus in Pecos, Texas.

Kilby is Chevron's first large-scale power project and will be big enough to power a city the size of San Francisco. The company expects to make a final investment decision by the end of the year, with the first power from Kilby expected in 2028.