Microsoft Signs 20-Year Power Purchase Agreement with Chevron to Build 2.67GW Data Center Power Project in West Texas

BlockBeats News, June 22, Microsoft and Chevron announced signing a 20-year long-term power purchase agreement to provide power support for Microsoft's data center in West Texas.

Under the agreement, Chevron will advance the Kilby project, expected to provide 2.67 gigawatts (GW) of generation capacity, using General Electric's NovaLT and Solar Turbines for power generation. Chevron expects to make a final investment decision on the project by the end of 2026, with the first power delivery set for 2028. The Kilby project is expected to generate over $10 billion in tax revenue and 2,000 job opportunities.

Meanwhile, Microsoft also announced its plan to build a new data center campus in Pecos, Texas, with investments expected to reach billions of dollars over 5 to 7 years, creating over 6,000 construction jobs. When operational, the campus will operate in conjunction with an on-site natural gas power plant.