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

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In Brief

Posted:

1:37 PM PDT · June 22, 2026

Image Credits:Justin Sullivan/Getty Images / Getty Images
  • Tim De Chant

Microsoft and Chevron announced plans connected Monday to make a 2.67-gigawatt earthy state powerfulness works successful West Texas to service the tech company’s AI and unreality information centers.

Under the 20-year powerfulness acquisition agreement, the works volition supply dedicated energy to a Microsoft-operated information center. Two ample GE Vernova turbines volition make astir of the power, with a Caterpillar subsidiary Solar Turbines providing the rest. (The Solar Turbines sanction mightiness dependable acquainted — xAI uses them successful its unpermitted powerfulness plant adjacent Memphis.) Microsoft volition bargain powerfulness from the powerfulness works for 20 years.

The task volition beryllium “among the largest co-located earthy state powerfulness and information halfway developments successful the U.S.” Chevron said successful a press release.

Though Microsoft has been telegraphing the move for months now, it’s inactive a important displacement for a institution that has been vocal astir its sustainability efforts. Microsoft has pledged to destruct its c emissions by 2030, a extremity that volition beryllium harder to scope with this caller powerfulness plant. 

Project Kilby, arsenic the powerfulness works is known, volition perchance merchandise much than 13 cardinal tons of c dioxide, 3,200 tons of criteria aerial pollutants, and 278,000 pounds of hazardous aerial pollutants, according to the Environmental Integrity Project.

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