Chevron Signs 20-Year Power Deal with Microsoft to Support West Texas Data Center

Chevron Corporation announced on June 22, 2026, that its wholly owned subsidiary, Energy Forge One LLC, has signed a 20-year power purchase agreement (PPA) with Microsoft Corporation to develop a co-located natural gas power facility in West Texas. The integrated energy company said the facility, known as Project Kilby, will deliver dedicated electricity to a Microsoft-operated data center.

Project Kilby is expected to deliver approximately 2.67 gigawatts of capacity, according to the company. Chevron said the facility will be built through a phased, modular approach that enables incremental expansion over time.

Jeff Gustavson, Chevron president of New Energies said, "AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transformation. Chevron is uniquely positioned to deliver power to customers with certainty, speed and at a competitive cost, leveraging Permian natural gas and our proven execution capabilities."

The company said a majority of the generation will come from large GE Vernova turbines and associated electrical infrastructure. Additional capacity will be provided by Solar Turbines, a wholly owned subsidiary of Caterpillar Inc.