Microsoft and Chevron plan one of the largest gas-powered data center projects in US

In Brief

1:37 PM PDT · June 22, 2026

Microsoft and Chevron announced plans on Monday to develop a 2.67-gigawatt natural gas power plant in West Texas to serve the tech company’s AI and cloud data centers.

Under the 20-year power purchase agreement, the plant will provide dedicated electricity to a Microsoft-operated data center. Two large GE Vernova turbines will generate most of the power, with a Caterpillar subsidiary Solar Turbines providing the rest. (The Solar Turbines name might sound familiar — xAI uses them in its unpermitted power plant near Memphis.) Microsoft will buy power from the power plant for 20 years.

The project will be “among the largest co-located natural gas power and data center developments in the U.S.” Chevron said in a press release.

Though Microsoft has been telegraphing the movefor months now, it’s still a significant shift for a company that has been vocal...

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