Chevron Signs 20-Year Power Agreement with Microsoft for West Texas Data Center
MSFT
Infrastructure, Data Centers, Energy
Positive
Microsoft has entered into a long-term power agreement with Chevron to support a data center in West Texas. The arrangement, referred to as Project Kilby, involves a co-located power facility developed specifically to serve the Microsoft data center.
The agreement spans a 20-year term, signaling a significant long-duration energy commitment by Microsoft as it continues to expand its data center infrastructure capacity.
Why it matters
Long-term power agreements of this scale reflect Microsoft's ongoing capital commitment to AI and cloud infrastructure buildout. Securing dedicated, co-located energy supply may help the company address power availability constraints that have become a key bottleneck for data center expansion.
Key facts
Microsoft signed a 20-year power agreement with Chevron • The project is named Project Kilby and is located in West Texas • The deal involves a co-located power facility serving a Microsoft data center • Agreement was announced in June 2026