Chevron Powers Microsoft Texas Data Center with Gas Plant

to construct a 2.67 gigawatt natural gas power plant in West Texas, specifically designed to supply a Microsoft-operated data center. This strategic "Kilby" project, expected to deliver first power in 2028 with a final investment decision by late 2026, aims to generate mid-teen returns and provide cash flow independent of traditional oil and gas price fluctuations.

The plant will utilize large GE Vernova turbines and additional capacity from Solar Turbines, a Caterpillar Inc. subsidiary.

Chevron and Engine No. 1 collaborated on the development.

The initiative is projected to create approximately 2,000 jobs and contribute over $10 billion in state and local tax revenue. Furthermore, the facility incorporates emissions control technology and will use non-potable, brackish groundwater, reducing strain on the regional grid by directly supplying electricity to Microsoft.

Chevron shares were up 1.19 percent in pre-market activity following the announcement.