Microsoft Corporation (NASDAQ:MSFT) shares are in the spotlight Tuesday after the company announced a 20-year power purchase agreement with Chevron Corporation (NYSE:CVX) for a co-located natural gas power facility in West Texas — one of the largest dedicated power and data center developments in U.S. history.
Microsoft stock is building positive momentum. Why are MSFT shares climbing?
The Deal
Under the agreement, Chevron’s wholly owned subsidiary Energy Forge One LLC will develop Project Kilby—a co-located power facility expected to deliver approximately 2.67 gigawatts of capacity to a Microsoft-operated data center through a phased, modular approach. A majority of the generation will come from large GE Vernova turbines, with additional capacity provided by Solar Turbines, a subsidiary of Caterpillar. First power delivery is anticipated in 2028, subject to Chevron’s Final Investment Decision expected by the end of 2026.
Why It Matters
