Microsoft and Chevron Sign 20-Year Power Deal For Texas Data Center
Project Kilby will start with 2.67 gigawatts and avoid the local grid as Microsoft expands its AI data-center footprint.
- Chevron Corp. signed a 20-year deal with Microsoft Corp. to provide natural-gas-fired power for a proposed West Texas data center, dubbed Project Kilby, supporting the tech giant's expanding artificial intelligence infrastructure.
- Chevron's president of New Energies, Jeff Gustavson, noted the project uses byproduct natural gas from the Permian Basin, which he called 'the most abundant gas basin in the country,' to bypass grid constraints.
- With commitments for seven GE Vernova Inc. turbines, the project carries an estimated cost of about $7 billion and will eventually generate 2.67 gigawatts of power.
- Texas holds 33 gigawatts of planned data-center power projects, the largest pipeline in the country, demonstrating why Microsoft is securing dedicated off-grid power to bypass intensifying competition for local utility resources.
- Targeting a 2028 launch for first power, Chevron plans to make a final investment decision later this year on the multi-billion-dollar development supporting growing artificial intelligence workloads.
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Microsoft Signs 20-Year Power Deal With Chevron Showing How Far AI's Energy Needs Have Grown
The post Microsoft Signs 20-Year Power Deal With Chevron Showing How Far AI’s Energy Needs Have Grown appeared first on 24/7 Wall St.. Chevron (CVX) signed a 20-year power purchase agreement with Microsoft to supply 2.7 gigawatts of electricity to a Texas data center, one of the largest energy deals of its kind. The project showcases the magnitude of electricity demand from AI infrastructure, with Microsoft's AI business surpassing $37 billion…
How Chevron Will Supply Energy To Microsoft’s Texas Data Center
Chevron announced a 20-year agreement to supply natural gas for Microsoft’s planned Project Kilby data center in West Texas, highlighting the growing energy demands of artificial intelligence infrastructure. According to the company, the facility is expected to consume nearly 2.7 gigawatts of electricity, an amount comparable to the power needs of roughly 2 million homes. 🔌Most of the electricity will be generated by large gas turbines supplied…
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