Chevron signs 20-year natural gas deal with Microsoft for AI data center
Key takeaways
- Power is expected to begin flowing to the data center in late 2028, with the site s development extending through the 2030s.
- GE Vernova turbines will account for the bulk of the plant s output, supplemented by units from Solar Turbines, which operates as a Caterpillar subsidiary.
- Chevron has not disclosed a cost estimate for the project.
Chevron signs 20-year natural gas deal with Microsoft for AI data center Quartz · Bloomberg / Getty Images Cris Tolomia Mon, June 22, 2026 at 7:40 PM GMT+7 2 min read CVX NG=F MSFT CAT Chevron signed a 20-year power purchase agreement with Microsoft on Monday to supply electricity from a natural gas plant to a data center the tech company plans to build in West Texas.
At full build-out, Project Kilby is designed to generate approximately 2.67 gigawatts — a figure the company says is roughly equivalent to the electricity needs of 2 million homes — rolled out in phases, the company said. Power is expected to begin flowing to the data center in late 2028, with the site s development extending through the 2030s. The site spans more than 2,000 acres in Reeves County, near the city of Pecos, according to The Wall Street Journal.
GE Vernova turbines will account for the bulk of the plant s output, supplemented by units from Solar Turbines, which operates as a Caterpillar subsidiary. Rather than connecting to the regional transmission system, the on-site plant will operate independently — a design Chevron says was deliberately chosen to insulate local ratepayers from any cost impact. Chevron is collaborating on the development with Joulent, an energy company launched by investment firm Engine No. 1.