Chevron and Microsoft sign deal to power data center

HOUSTON – Monday, Chevron Corporation announced that a 20-year power purchase agreement has been signed between Microsoft Corp. and Energy Forge One LLC, a wholly owned subsidiary, to develop a co-located power facility in West Texas that will supply dedicated electricity to a Microsoft-operated data center. Project Kilby is the development that Chevron and Engine No. 1 have been working on together.

Kilby is anticipated to provide roughly 2.67 gigawatts of capacity, constructed using a modular, phased architecture that allows for gradual expansion. Large GE Vernova turbines and related electrical infrastructure will provide the majority of the generation, with Solar Turbines, a fully owned subsidiary of Caterpillar Inc., contributing additional capacity. By utilizing America’s natural gas edge, this places Kilby among the biggest co-located natural gas power and data center expansions in the United States and supports the next stage of American AI growth.