Microsoft Signs 20-Year Power Purchase Agreement with Chevron to Build 2.67GW Data Center Power Project in West Texas

BlockBeats News, June 22nd, Microsoft and Chevron announced the signing of a 20-year long-term power purchase agreement to provide power support for Microsoft's data center in West Texas.

According to the agreement, Chevron will advance the Kilby project, expected to provide 2.67 gigawatts (GW) of generation capacity, using General Electric's NovaLT and Solar Turbines for power generation. Chevron expects to make a final investment decision on the project by the end of 2026, with the initial power delivery set for 2028. The Kilby project is projected to generate over $10 billion in tax revenue and create 2,000 jobs.

Meanwhile, Microsoft also announced the construction of a new data center campus in Pecos, Texas, with an investment scale reaching billions of dollars over 5 to 7 years, creating over 6,000 construction jobs. When operational, the campus will operate in conjunction with an onsite natural gas power facility.

Following the announcement, Chevron's stock price rose 1.17% in pre-market trading.