Chevron is seeking a $227 million tax abatement to construct a natural gas power plant in West Texas. The facility will bypass the public energy grid to exclusively power a large-scale data center.
Microsoft is the potential tenant for the site under an active exclusivity agreement. Chevron confirmed the arrangement while noting that no definitive deal has been finalized.
The project targets the massive energy requirements of the AI and data center industries. This request arrives as Texas lawmakers begin scrutinizing large-scale tax incentives for industrial projects.