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Microsoft and Chevron plan one of the largest gas-powered data center projects in US

TechCrunch · Jun 22, 2026, 8:37 PM · Also reported by 4 other sources

Key takeaways

  • Microsoft and Chevron announced plans on Monday to develop a 2.67-gigawatt natural gas power plant in West Texas to serve the tech company s AI and cloud data centers.
  • Under the 20-year power purchase agreement, the plant will provide dedicated electricity to a Microsoft-operated data center.
  • The project will be among the largest co-located natural gas power and data center developments in the U.S.” Chevron said in a press release.

Microsoft and Chevron announced plans on Monday to develop a 2.67-gigawatt natural gas power plant in West Texas to serve the tech company s AI and cloud data centers.

Under the 20-year power purchase agreement, the plant will provide dedicated electricity to a Microsoft-operated data center. Two large GE Vernova turbines will generate most of the power, with a Caterpillar subsidiary Solar Turbines providing the rest. (The Solar Turbines name might sound familiar — x AI uses them in its unpermitted power plant near Memphis.) Microsoft will buy power from the power plant for 20 years.

The project will be among the largest co-located natural gas power and data center developments in the U.S.” Chevron said in a press release.

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