Chevron, Microsoft Partner on 2.7 GW Texas Power Project

Category: Markets

Published: 2026-06-22T16:13:29.000Z

Chevron and Microsoft have partnered on Project Kilby, a 2.7 GW power facility in West Texas, to supply dedicated electricity to a Microsoft data center. Chevron's subsidiary, Energy Forge One LLC, signed a 20-year power purchase agreement with Microsoft for the large-scale project, which will primarily utilize GE Vernova turbines and additional capacity from Solar Turbines. This collaboration highlights how traditional energy companies are adapting to the growing power demands of AI and cloud workloads, with the project projected to generate over $10 billion in state and local taxes and create nearly 2,000 jobs.

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