Chevron signed a 20-year power purchase agreement with Microsoft to develop the Kilby natural gas facility.
The West Texas plant will generate 2.67 gigawatts of dedicated electricity for Microsoft data centers. First power delivery from the project is scheduled for 2028.
The deal provides Chevron with a long-term revenue stream independent of volatile oil and gas prices. Microsoft secures a massive power source to eliminate bottlenecks in its artificial intelligence expansion.