Chevron Powers Up Microsoft's Texas Data Center Ambitions

Microsoft and Chevron have signed a 20-year deal to supply power for a proposed data center in West Texas. The partnership will provide natural-gas fired power from Project Kilby, which is expected to produce first power by 2028 and ramp up to 2.67 gigawatts over time.

Chevron plans to make a final investment decision later this year, with the project expected to cost around $7 billion. The data center will be powered by seven GE Vernova turbines that will feed on cheap gas from the Permian Basin.

MICROSOFT IS doubling down on building data centers as it competes in the AI market. The company plans to double its data-center footprint over the next two years, which could put pressure on the power grid and raise costs for consumers.