Chevron to fuel massive Microsoft data center in Texas with natural gas
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Strip will ignite a large fuel Microsoft The oil giant announced Monday that it has reached a 20-year agreement with natural gas for its data center in West Texas.
The data center, called Project Kilby, is expected to consume approximately 2.7 gigawatts of electricity, the equivalent of approximately 2 million homes.
Most of the electricity will come from Chevron’s partner’s large gas turbines GE Vernova. Caterpillar It will also provide turbines. Power infrastructure will be located at the data center site.
The Kilby Project has not begun construction in Reeves County. Chevron expects to make a final investment decision on the project later this year. The data center will start receiving electricity in 2028.
Microsoft’s partnership with Chevron comes as it undertakes a massive build-out of data center infrastructure to power AI applications. $190 billion in capital expenditures is planned this year, an increase of 61% compared to 2025.
Microsoft has invested primarily in renewable energy to offset carbon dioxide emissions from data centers to combat climate change. It has turned to nuclear energy in 2024, with an investment in restarting the Three Mile Island nuclear power plant in Pennsylvania.
Microsoft’s embrace of natural gas through a partnership with the oil industry shows that it is also willing to invest in fossil fuels to meet its electricity needs.
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