Microsoft and Google officials speak at data center conference
Microsoft has pledged to stop using NDAs on its Ohio data centers, but rivals such as Amazon and Google have not followed suit.
- Chevron and Microsoft have signed a 20-year power agreement for data centers in West Texas.
- The new power facility, Project Kilby, will be co-located with the Microsoft Data Center in Reeves County.
- Project Kilby is expected to generate approximately 2.67 gigawatts of capacity, primarily from natural gas turbines.
- The project aims to provide power directly to data centers and reduce the strain on local power grids.
Chevron has signed a 20-year power agreement with Microsoft to support its West Texas data center in the Permian Basin.
The energy company announced Monday, June 22, that its wholly owned subsidiary, Energy Forge One LLC, has signed an agreement with Microsoft to develop a co-located power facility for a Microsoft-operated data center in Reeves County.
“Our agreement with Chevron provides us with a dedicated, large-scale mandate to support advanced computing evolution and reliability. We are excited to grow with and become a deeper part of the West Texas community through this partnership,” said Noel Walsh, president of cloud operations and innovation at Microsoft.
The large-scale power generation development, known as Project Kilby, is expected to provide approximately 2.67 gigawatts of capacity and will be built in stages and allow for gradual expansion over time.
Chevron said the majority of the electricity generation will come from GE Vernova’s large turbines and associated power infrastructure, with additional capacity provided by Solar Turbines, a wholly owned subsidiary of Caterpillar.
Chevron said that locating Kilby next to Microsoft’s data center will allow Kilby to provide power directly to Microsoft while reducing the impact on the local grid that consumers rely on.
“AI is reshaping the global economy, and abundant, affordable and reliable energy is essential to powering that transformation,” Jeff Gustafson, president of new energy at Chevron, said in a statement. “Chevron is uniquely positioned to leverage Permian natural gas and proven execution capabilities to deliver power to customers reliably, quickly and at a competitive cost.”
According to Chevron, Kilby is expected to bring significant economic benefits to the region, including more than $10 billion in state and local tax revenue, supporting approximately 2,000 jobs and broader economic growth.
Chevron also said Kilby will use non-potable brackish groundwater instead of fresh water to operate the power plant.
Mateo Rosiles is a Texas Connect reporter for USA TODAY and local Texas newspapers. Do you have any news tips for him? Email him: mrosiles@usatodayco.com.
