Microsoft Chevron deal shows AI data centre power push
Microsoft has signed a 20-year power agreement with Chevron for a planned AI data centre in West Texas.
Chevron’s wholly owned subsidiary, Energy Forge One LLC, signed the power purchase agreement with Microsoft. The agreement covers dedicated electricity for a Microsoft-operated data centre through Project Kilby, a co-located power facility and data centre complex.
Chevron is working with Joulent, an energy company launched by investment firm Engine No. 1, to build approximately 2.67GW of generating capacity in Reeves County. The project will use a phased, modular approach to add generation in stages.
The site will cover more than 2,000 acres in the Permian Basin and use natural gas from Chevron’s fields in the area. Chevron said Project Kilby would be among the largest co-located natural gas power and data centre developments in the US.
Most of the electricity is expected to be generated using GE Vernova turbines. Additional capacity will...
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