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Microsoft and Chevron Sign 20-Year Power Deal For Texas Data Center
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Chevron and Microsoft's 20-Year Natural Gas Power Deal for West Texas Data Center
At 5:57 · chapter starts 1:46
Kevin Crowley explains how Chevron's deal with Microsoft turns stranded Permian Basin gas into a 2.67GW behind-the-meter data center power supply, marking a new business for the oil major. [1] — Kevin Crowley "Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigaw…" 01:48
Chevron signed a 20-year agreement with Microsoft to supply natural gas-fired power to a proposed West Texas data center.
Chevron is turning stranded Permian Basin natural gas — so abundant it overwhelms pipelines and must be burned as waste — into a 2.67-gigawatt power plant for Microsoft's AI data center. The project is 100% behind the meter, no utility involved, no impact on local ratepayers.
Project Kilby is expected to ramp up to 2.67 gigawatts over time, enough to power more than 530,000 Texas homes.
The proposed West Texas data center is located about 400 miles west of the Dallas-Fort Worth area, in the heart of the Permian Basin.
Chevron says the project is 100% behind the meter, meaning no utility is involved and local ratepayers are unaffected.
Early on, big tech preferred renewables for data centers and building near population centers. But the sheer scale of AI compute demand is forcing a pragmatic turn to natural gas — and remote locations with cheap, abundant energy are now competitive advantages.
