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Microsoft and Chevron plan one of the largest gas-powered data center projects in US

Microsoft, Chevron, and investment fund Engine No. 1 entered an exclusivity agreement for power generation and supply. The project features a colocated data center and power plant campus in West Texas. Initial power capacity is set at 2.5 gigawatts with the possibility to double that size.

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What changed

New details reveal the $7 billion deal value, the involvement of Engine No. 1, and specific power capacity targets.

Live updates

  1. Microsoft and Chevron sign $7B deal for Texas AI power project

    Microsoft, Chevron, and investment fund Engine No. 1 entered an exclusivity agreement for power generation and supply. The project features a colocated data center and power plant campus in West Texas. Initial power capacity is set at 2.5 gigawatts with the possibility to double that size.

    What's confirmed:

    • Microsoft, Chevron, and investment fund Engine No. 1 signed an exclusivity agreement for power generation and supply.
    • The project is valued at $7 billion.
    • The colocated data center and power plant campus will start with 2.5 gigawatts of power.
    • The facility has the potential to double its initial size.
    confidence 100%
  2. Microsoft and Chevron Partner on Massive West Texas AI Data Center

    Microsoft and Chevron signed a 20-year agreement to build a natural gas power plant for an AI data center in Pecos, West Texas. The project aims to use on-site generation to avoid strained electric grids. Operations are expected to begin in 2028.

    What's confirmed:

    • Microsoft and Chevron signed a 20-year power deal to build a natural gas plant for an AI data center in West Texas.
    • The data center project is located in Pecos.
    • The agreement involves a 2.67 GW off-grid gas plant.
    • The project is scheduled to start in 2028.
    • The facility will use natural gas to power AI compute.
    • Texas Pacific Land Corporation will provide land and water solutions to Chevron for the project.

    Still unconfirmed:

    • Caterpillar has a key role in the data center build.
    • The project is one of the largest gas-powered data center projects in the US.
    • The power deal is 2.7 GW.
    confidence 95%