Chevron to power Microsoft's huge Texas data center with natural gas under 20-year deal

Chevron will supply natural gas to fuel Microsoft's massive data center in West Texas, known as Project Kilby, under a 20-year agreement. The data center is expected to consume about 2.7 gigawatts of electricity, equivalent to the power needs of roughly 2 million homes. Most of the electricity will come from large gas turbines provided by Chevron's partner GE Vernova, with additional turbines from Caterpillar. The project is planned to start receiving power in 2028, with Chevron aiming to finalize investment decisions this year. This move marks a shift as Microsoft, which has mainly invested in renewable and nuclear energy, embraces natural gas to meet growing power demands for its data centers.