Chevron will build and operate a 2.67-gigawatt natural gas facility in West Texas. The project will supply electricity to a Microsoft data center under a 20-year agreement.
Developed with Engine No. 1 as Project Kilby, the site will be one of the largest co-located power and data developments in the U.S. The facility will utilize Chevron’s Permian Basin assets to support AI and cloud computing infrastructure.
This strategic pivot establishes a revenue stream independent of volatile commodity price cycles. The plant will feature turbines from GE Vernova and Caterpillar’s Solar Turbines.
Chevron expects to reach a final investment decision by the end of 2026. Initial power delivery is projected for 2028.