Chevron to fuel massive Microsoft data center in Texas with natural gas

[BumRushDaShow]

Source: CNBC

Published Mon, Jun 22 2026 7:59 AM EDT Updated 24 Min Ago


Chevron 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.

A majority of the electricity will come from large gas turbines from Chevron’s partner GE Vernova. Caterpillar will also provide turbines. The power infrastructure will be located at the data center site.

Project Kilby has not started construction in Reeves County. Chevron expects to make a final investment decision on the project later this year. The data center would start receiving power in 2028.

Microsoft’s parternship with Chevron comes as it undertakes a massive buildout of data centers to power artificial intelligence applications. It plans $190 billion in capital expenditures this year, a 61% increase over 2025. Microsoft’s embrace of natural gas through a partnership with the oil industry shows it is willing to invest in a fossil fuel to meet its electricity needs.

Read more: https://www.cnbc.com/2026/06/22/chevron-cvx-microsoft-msft-natural-gas-data-center.html

[Ray Bruns]

1. I always thought we would blow ourselves up. Now, I think our species dies with a whimper.