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.
What changed
New details reveal the $7 billion deal value, the involvement of Engine No. 1, and specific power capacity targets.
Live updates
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Microsoft and Chevron sign $7B deal for Texas AI power project
confidence 100%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.
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Microsoft and Chevron Partner on Massive West Texas AI Data Center
confidence 95%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.