Chevron signs 20-year deal to supply 2.7 GW of natural gas power to Microsoft AI data center in Texas

Chevron has entered a 20-year power purchase agreement with Microsoft to provide 2.7 gigawatts of natural-gas-fired electricity to a Microsoft data center in West Texas, supporting the massive energy needs of Microsoft's AI infrastructure. The project, named Project Kilby, involves key partners GE Vernova and Caterpillar supplying turbines and equipment, and is expected to create nearly 2,000 jobs and generate over $10 billion in tax revenue locally. Chevron aims to finalize investment decisions by the end of 2026 and begin power delivery in 2028, marking a significant growth area tied to the expanding AI sector. Investors should watch for community responses and whether other energy firms follow Chevron's lead in long-term AI power deals.