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Microsoft signs 20-year power agreement with Chevron to build a 2.67GW data center power project in West Texas
BlockBeats News, June 22 — Microsoft and Chevron announced that they have signed a 20-year long-term power purchase agreement to supply electricity for Microsoft’s data centers in West Texas.
Under the agreement, Chevron will advance the Kilby project, which is expected to provide 2.67 gigawatts (GW) of power generation capacity, using GE’s VinnoVa turbines and solar turbines. Chevron expects to make a final investment decision on the project by the end of 2026, with the first power delivery scheduled for 2028. The Kilby project is expected to generate more than $10 billion in tax revenue and create 2,000 jobs.
Meanwhile, Microsoft also announced that it will build a new data center campus in Pecos, Texas, with an investment scale reaching several billion dollars within 5 to 7 years, and creating more than 6,000 construction jobs. When the campus goes into operation, it will run in conjunction with a natural gas power generation facility located on the same site.
After the news was released, Chevron’s share price rose 1.17% before the market opened.