{"id":20678,"date":"2026-06-24T06:22:21","date_gmt":"2026-06-23T21:22:21","guid":{"rendered":"https:\/\/tomorrowaccess.com\/?p=20678"},"modified":"2026-09-25T07:18:56","modified_gmt":"2026-09-24T22:18:56","slug":"microsoft-chevron-gas-data-center-texas-2","status":"publish","type":"post","link":"https:\/\/tomorrowaccess.com\/en\/news\/20678","title":{"rendered":"Microsoft and Chevron Plan 2.67GW Gas Plant for Texas Data Center"},"content":{"rendered":"\n<div class=\"wp-block-group is-hidden-front is-layout-constrained wp-container-core-group-is-layout-bc4dd9bf wp-block-group-is-layout-constrained\">\n<p class=\"post-title wp-block-paragraph\">Microsoft and Chevron Plan 2.67GW Gas Plant for Texas Data Center<\/p>\n\n\n\n<p class=\"post-date wp-block-paragraph\">June 22, 2026<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<div id=\"post-content\" class=\"wp-block-group content is-post has-medium-font-size is-layout-constrained wp-container-core-group-is-layout-a98c9622 wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1536\" height=\"1024\" src=\"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/09\/microsoft-chevron-gas-data-center-texas-2-manual-20260924-1456.jpg\" alt=\"Microsoft and Chevron Plan 2.67GW Gas Plant for Texas Data Center\" class=\"wp-image-22815\" srcset=\"https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/09\/microsoft-chevron-gas-data-center-texas-2-manual-20260924-1456.jpg 1536w, https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/09\/microsoft-chevron-gas-data-center-texas-2-manual-20260924-1456-300x200.jpg 300w, https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/09\/microsoft-chevron-gas-data-center-texas-2-manual-20260924-1456-1024x683.jpg 1024w, https:\/\/tomorrowaccess.com\/wp-content\/uploads\/2026\/09\/microsoft-chevron-gas-data-center-texas-2-manual-20260924-1456-768x512.jpg 768w\" sizes=\"auto, (max-width: 1536px) 100vw, 1536px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><br>Chevron has announced plans to develop a large natural gas power facility in West Texas to supply electricity to a Microsoft-operated data center, with Microsoft buying the power under a 20-year agreement. The facility is expected to eventually reach 2.67 gigawatts of capacity.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">For a company that has positioned itself as a sustainability leader, the deal shows how the surging power demand of AI and cloud computing is testing Microsoft&#8217;s own climate targets.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"has-large-font-size wp-block-paragraph\"><br><strong>A Planned 2.67-Gigawatt Plant Under a 20-Year Agreement: Project Kilby<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">According to Chevron, its wholly owned subsidiary Energy Forge One LLC will develop a facility known as Project Kilby in Reeves County, near Pecos in West Texas, on a site of more than 2,000 acres.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Once fully built out, its 2.67-gigawatt output would reportedly be equivalent to the power used by about 2 million homes under average consumption. Most of the electricity will come from GE Vernova gas turbines and related equipment, with additional capacity from Solar Turbines, a Caterpillar subsidiary.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The facility will supply dedicated power to a Microsoft-operated data center serving the company&#8217;s AI and cloud workloads, with Microsoft buying the electricity over a 20-year term. Power delivery is expected to begin in 2028, and a final investment decision is due by the end of 2026.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Chevron says the project will generate more than $10 billion in state and local tax revenue and support nearly 2,000 jobs. &#8220;AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transformation,&#8221; said Jeff Gustavson, president of Chevron New Energies.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"has-large-font-size wp-block-paragraph\"><br><strong>Why a Sustainability-Focused Microsoft Turned to Natural Gas<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Microsoft has pledged to become carbon negative by 2030, and leaning on natural gas raises questions about how the move squares with that goal.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The deal reflects a clear trade-off: AI and cloud workloads are driving fast-rising power demand, and Microsoft is seeking large-scale, reliable electricity on a faster timeline. Gas plants deliver large volumes of reliable power and can be built relatively quickly.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The project&#8217;s water plan is also notable. Project Kilby will use non-potable, brackish groundwater rather than freshwater, and Chevron is reportedly evaluating the reuse of produced water from oil and gas operations.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Co-locating a plant with a data center and supplying power directly, at least initially without routing it through the public grid, is a growing tactic among AI operators.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"has-large-font-size wp-block-paragraph\"><br><strong>What 13 Million Tons of Emissions Reveals About AI&#8217;s Energy Cost<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">According to the Environmental Integrity Project&#8217;s Oil and Gas Watch database, Project Kilby could emit more than 13 million tons of greenhouse gases (measured as carbon dioxide equivalent) per year, along with about 3,200 tons of criteria air pollutants and about 278,000 pounds of hazardous air pollutants.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Those figures highlight the gap between Microsoft&#8217;s climate commitments and the reality of expanding AI infrastructure.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Discussions of AI&#8217;s power use often focus on efficiency inside the data center, yet operational emissions are heavily shaped by how the power that drives those data centers is generated.<\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Securing a dedicated plant offers stable supply but risks locking in fossil fuel use for the long term. A 20-year contract means emissions will continue well past the 2030 target year.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"has-large-font-size wp-block-paragraph\"><br><strong>What to Watch Next<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">The final investment decision is due by the end of 2026, so it remains uncertain whether the project will proceed as planned. It is also not yet clear how Microsoft will reconcile the plant with its 2030 emissions goal, or whether additional measures to curb emissions will follow. If construction is formally approved, the project will become a concrete test of how AI&#8217;s power demand affects corporate climate targets.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><br><strong>Sources<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><a href=\"https:\/\/www.chevron.com\/newsroom\/2026\/q2\/chevron-signs-20-year-power-agreement-with-microsoft-for-west-texas-data-center\" target=\"_blank\" rel=\"noopener\">Chevron &#8211; Chevron Signs 20-Year Power Agreement with Microsoft for West Texas Data Center<\/a><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><a href=\"https:\/\/oilandgaswatch.org\/facility\/rec_d41om0ckv0k9e3gugc80\" target=\"_blank\" rel=\"noopener\">Environmental Integrity Project Oil and Gas Watch &#8211; Kilby Power Plant<\/a><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><a href=\"https:\/\/www.reuters.com\/legal\/litigation\/chevron-signs-power-supply-deal-with-microsoft-texas-data-center-2026-06-22\/\" target=\"_blank\" rel=\"noopener\">Reuters &#8211; Chevron signs power supply deal with Microsoft for Texas data center<\/a><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><a href=\"https:\/\/www.cnbc.com\/2026\/06\/22\/chevron-cvx-microsoft-msft-natural-gas-data-center.html\" target=\"_blank\" rel=\"noopener\">CNBC &#8211; Chevron to fuel massive Microsoft data center in Texas using natural gas<\/a><\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><a href=\"https:\/\/techcrunch.com\/2026\/06\/22\/microsoft-and-chevron-plan-one-of-the-largest-gas-powered-data-center-projects-in-us\/\" target=\"_blank\" rel=\"noopener\">TechCrunch &#8211; Microsoft and Chevron plan one of the largest gas-powered data center projects in US<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Chevron will develop a 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