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Chevron Signs 20-Year Power Agreement with Microsoft for West Texas Data Center

June 22, 2026

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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

Chevron Corporation today announced that Energy Forge One LLC, a wholly owned subsidiary, has signed an agreement with Microsoft Corp. to develop a co-located power facility in West Texas that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement.

Chevron and Engine No. 1 have been collaborating on the development, known as Project Kilby.

Kilby is expected to deliver approximately 2.67 gigawatts of capacity, "built through a phased, modular approach that enables incremental expansion over time," Chevron said

A majority of the generation will come from large GE Vernova turbines and associated electrical infrastructure, with additional capacity provided by Solar Turbines, a wholly owned subsidiary of Caterpillar Inc.

"This positions Kilby among the largest co-located natural gas power and data center developments in the U.S.," Chevron said

First power delivery is anticipated in 2028.

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