Techub News — Chevron and Microsoft have entered into a 20-year power purchase agreement to develop a 2.67 GW natural gas-fired power generation facility in West Texas, which will directly supply electricity to Microsoft's AI data centers. The project, codenamed "Kilby," is expected to achieve first power in 2028.
A final investment decision for the project is anticipated by the end of 2026. According to the announcement, the development is projected to create nearly 2,000 jobs and generate over $10 billion in tax revenue for the region. Notably, Chevron will deliver electricity directly to hyperscale tech customers through its subsidiary, bypassing traditional utility companies. This structure highlights a growing trend of direct energy partnerships between oil majors and technology giants to meet the surging power demands of AI workloads.