Microsoft and Chevron Unveil Ambitious Gas-Powered Data Center Initiative in the U.S.
On Monday, Microsoft and Chevron revealed their intention to construct a 2.67-gigawatt natural gas power facility in West Texas, aimed at supporting the tech giant’s AI and cloud data centers.
As part of a two-decade power purchase agreement, this facility will supply dedicated energy to a data center managed by Microsoft. The majority of the power will be generated using two large GE Vernova turbines, while a subsidiary of Caterpillar, Solar Turbines, will contribute the remainder of the energy. (The name Solar Turbines might ring a bell, as it is utilized by xAI in its unapproved power facility located near Memphis.) Microsoft is set to acquire power from this facility for the next 20 years.
According to Chevron, this initiative will rank among the largest developments in the U.S. that combine natural gas power generation with data center operations.
Although Microsoft has hinted at this direction for several months, this marks a notable shift for a company publicly committed to sustainability. Microsoft aims to achieve net-zero carbon emissions by 2030, a target that may become more difficult to attain with the establishment of this new facility.
Known as Project Kilby, the power plant is projected to emit over 13 million tons of carbon dioxide, along with 3,200 tons of other air pollutants and 278,000 pounds of hazardous air pollutants, as reported by the Environmental Integrity Project.
