Chevron (CVX) Signs 20 Year Microsoft Deal To Power Texas AI Data Center
MSFT
AI Infrastructure, Energy, Data Centers
Positive
Microsoft has entered into a long-term natural gas power supply agreement with Chevron to support a major AI data center in West Texas, known as Project Kilby. The arrangement also involves energy infrastructure firm Joulent and is designed to deliver electricity specifically tailored to the power demands of AI workloads.
The project draws on Chevron's resource position in the Permian Basin as the energy source. The deal represents Microsoft's continued effort to secure dedicated, long-term energy infrastructure to support the expansion of its AI data center capacity.
Why it matters
Securing a long-term, dedicated power supply is a critical enabler for Microsoft's AI infrastructure buildout, addressing one of the primary constraints on data center expansion. This agreement signals Microsoft's commitment to large-scale, purpose-built energy arrangements to support its AI ambitions.
Key facts
Microsoft signed a long-term natural gas power supply deal with Chevron for an AI data center in West Texas • The project is referred to internally as Project Kilby • Energy infrastructure firm Joulent is also a party to the arrangement • Power will be sourced from Chevron's Permian Basin resource position