Chevron and Microsoft signed a 20-year agreement to power a massive West Texas data center. The deal directly links Permian Basin natural gas production to the expanding artificial intelligence sector.
Known as Project Kilby, the facility will reach a power capacity of 2.67 gigawatts. This output provides enough electricity to power approximately 2 million homes. Developers expect the site to become one of the largest co-located natural gas and data center facilities in the U.S. by 2028.
The partnership secures a long-term demand source for Chevron’s natural gas reserves. While financial terms remain undisclosed, Chevron expects the project to generate nearly 2,000 jobs. This move allows the energy giant to leverage fossil fuel resources for the digital economy’s growth.