Microsoft and Chevron Team Up on $7 Billion Texas Power Plant for Data Centers
Microsoft has entered exclusive talks with Chevron and Engine No. 1 over a long-term deal to power a massive data center campus in West Texas.
The proposed natural-gas fired power plant would cost $7 billion, generating 2,500 megawatts of electricity, making it one of the largest in the US.
Chevron and Engine No. 1 have been working on this project for some time, having secured an order for seven large turbines from GE Vernova Inc., which are in high demand.
The project aims to provide reliable baseload power to Microsoft's data centers, which are being built farther from population centers due to their enormous power demands.
The power plant is expected to be operational by 2027 and would take three years to ramp up to its full capacity of 2,500 megawatts.