Microsoft is going big in West Texas. The company is planning a sprawling data center campus in Pecos, Reeves County, spanning roughly 7,000 acres with an expected capacity of approximately 2,500 to 2,595 MW.
The power behind the plan
Microsoft has entered an exclusivity agreement with Chevron and Engine No. 1 to develop a $7 billion natural gas-fired power plant dedicated to the campus. The deal was initiated between March and April 2026, and the plant is expected to initially generate 2,500 MW with room to scale further.
This makes it one of the largest behind-the-meter energy projects ever connected to a single tech tenant. Instead of pulling from the public grid, Microsoft is essentially building its own private power supply, wired directly to its servers.
The campus is expected to become operational around 2027, with the power plant reaching full capacity in phases over the following years.
