Chevron has signed a 20-year power purchase agreement with Microsoft to build a dedicated gas-fired generation facility in West Texas.
The development is named Project Kilby and it will be built and operated by Energy Forge One, a subsidiary of Chevron.
The purpose of the project is to supply electricity directly to a Microsoft data centre, thereby reducing its reliance on the regional grid.
Chevron has been working on the project alongside Engine No. 1, an investment firm best known for its 2021 boardroom campaign that pushed ExxonMobil toward emissions reduction targets.
Jeff Gustavson, Chevron's President of New Energies, says that companies like Chevron are key to enabling the AI boom.
