Chevron's West Texas Data Center Project Hit by State Permit Moratorium
Texas politics is causing a delay in the investment decision for Project Kilby, a massive data center project. The joint venture between Chevron and Joulent aims to use nearly 3 gigawatts of gas turbines to power a Microsoft data center in West Texas.
Preliminary earthmoving work has already begun at the site, while developers finalize construction contracts and await final state permits. However, a moratorium on new data center permits imposed by Gov. Greg Abbott last month may push the final investment decision to 2027.
Chevron's vice president for power solutions, Daniel Droog, stated that 'the permitting and regulatory side has caused some slowdown or potential delay in the system.' The project is expected to produce its first electrons by 2028.