Chevron and Microsoft Deal Proves Natural Gas Is the Real Fuel Powering AI

In a move that will disappoint those still clinging to the fantasy that wind turbines and solar panels can single-handedly run the digital economy, Chevron announced a 20-year power purchase agreement with Microsoft to supply dedicated electricity to a massive new data center campus in West Texas. The project, known as Kilby and developed through Chevron’s Energy Forge One subsidiary in partnership with Engine No. 1, will feature a co-located natural gas-fired power plant capable of delivering up to 2.67 gigawatts.

That is enough reliable power to serve the equivalent of roughly two million average American homes. First power is targeted for 2028, with the facility built in modular phases using large GE Vernova turbines and Solar Turbines equipment running on abundant Permian Basin natural gas.