Chevron signs 20-year deal to power Microsoft's Texas data center with natural gas
By
Spencer Kimball
Summary
Chevron has signed a 20-year agreement to supply natural gas to power Microsoft's massive data center (Project Kilby) in West Texas. The data center will consume nearly 2.7 gigawatts of electricity—equivalent to about 2 million homes. Most of the power will come from large gas turbines supplied by Chevron's partner GE Vernova, with additional turbines from Caterpillar. The power infrastructure will be built on-site at the data center in Reeves County, though construction has not yet started and Chevron has not made a final investment decision. The deal highlights Microsoft's willingness to invest in fossil fuels to meet the growing energy demands of its data centers.
Source

Key quotes
· 3 pulledChevron will fuel a massive Microsoft data center in West Texas with natural gas under a 20-year agreement, the oil major announced Monday.
The data center, called Project Kilby, is expected to consume nearly 2.7 gigawatts of electricity, which is equivalent to about 2 million homes.
Microsoft's embrace of natural gas shows it is willing to invest in a fossil fuel to meet the power demand from its data centers.
You might also wanna read

Chevron and Microsoft Sign 20-Year Power Agreement for West Texas Data Center
Chevron Corporation, through its subsidiary Energy Forge One LLC, has signed a 20-year power purchase agreement with Microsoft to develop a

Chevron and Microsoft Sign 20-Year Power Agreement for West Texas Data Center
Chevron Corporation, through its subsidiary Energy Forge One LLC, has signed a 20-year power purchase agreement with Microsoft to develop a
US Datacenters Shift to Coal Power Amid High Gas Prices and AI Demand Surge
US datacenters are increasingly turning to coal-powered energy due to high natural gas prices and surging electricity demand driven by AI an
America's data center boom faces a power delivery bottleneck
The article examines how the massive AI data center buildout, exemplified by the $40+ billion Stargate project in Abilene, Texas, is being b
Gas-Powered Data Centers for AI Could Emit 129 Million Tons of CO2 Annually, Surpassing Morocco's Emissions
A WIRED investigation reveals that natural gas projects powering just 11 data center campuses in the US—built to serve AI companies like Ope
AI Data Centers Turn to Onsite Power Generation Amid Grid Capacity Crisis
The article analyzes the growing power crisis facing AI data centers and explores onsite power generation solutions as an alternative to tra
Meta Invests $10 Billion in Louisiana AI Data Center Requiring Massive Gas-Fired Power Expansion
Meta (Facebook's parent company) is investing $10 billion to build a massive AI data center in rural Richland Parish, Louisiana, requiring e
Comments
Sign in to join the conversation.
No comments yet. Be the first.
