TECH NEWS

Microsoft turns to Chevron’s gas to power a Texas data centre

https://media.thenextweb.com/2026/06/chevron-logo.avif

The Chevron Microsoft gas deal hands the oil major a 20-year contract to power a giant West Texas data centre. For a company that built its AI plans on renewables and nuclear, that is a sharp turn.

Chevron will power one of the largest data centres in the United States by burning natural gas. The oil major announced the 20-year deal with Microsoft on Monday.

The power plant is called Project Kilby. It will rise near the city of Pecos in Reeves County, in the heart of the Permian Basin.

Chevron says it will deliver first power in 2028. The plant should ramp up to 2.67 gigawatts over time, roughly enough for 2 million homes.

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