Leading multinational energy giant, Chevron and digital champion, Microsoft have signed an agreement to develop a co-located natural gas power facility to support a new data centre campus in West Texas.
The project, known as Kilby, will supply dedicated electricity to Microsoft’s data centre campus in Pecos, Texas, under a 20-year arrangement.
The campus is expected to add up to 2 gigawatts of computing capacity to support growing demand for AI services such as Copilot.
According to Chevron, the facility will be one of the largest co-located natural gas power projects in the United States. It is expected to begin delivering power by 2028 and scale up to about 2.67 gigawatts over time.
The development, backed by Chevron in partnership with Microsoft, GE Vernova, Caterpillar subsidiary Solar Turbines, and investment firm Engine No. 1, is expected to support more than 6,000 construction jobs and several hundred permanent roles.
Chevron plans to take a final investment decision on the project by the end of the year, as it positions the development to support rising electricity demand from AI infrastructure growth.
