Chevron has signed a 20-year agreement to sell electricity to Microsoft for a data centre in West Texas, cementing the US oil major’s move into power to meet significant demand from the AI build-out.
The oil and gas producer is working with Engine No. 1, a US investment firm, to develop Project Kilby, which will deliver 2.7 gigawatts of capacity in the Permian Basin.
Chevron is expected to make the final decision on building a gas-fired power plant for the project later this year. It did not disclose the cost of Project Kilby, which ranks among the largest data centres in the US.
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