Chevron and Microsoft have signed a 20-year power agreement to build Project Kilby, a 2.67-gigawatt natural gas facility in West Texas that will supply energy directly to a Microsoft data center. The co-located power plant is designed to meet the massive energy demands of AI computing while reducing strain on the regional grid that serves consumers.
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Chevron's subsidiary Energy Forge One LLC has signed a 20-year agreement with Microsoft to co-locate a power facility called Project Kilby next to Microsoft's data center in Reeves County, West Texas. The facility will generate about 2.67 gigawatts of capacity, primarily from natural gas turbines, and will be built in phases to allow incremental expansion.
Why it matters
Large-scale AI data centers require enormous amounts of reliable power, and the regional grid is strained by this growing demand. By building dedicated power generation on-site and delivering it directly to the data center, this project aims to support Microsoft's computing needs while reducing the burden on consumers' power supply in the region.
What to watch
Chevron projects the project will deliver more than $10 billion(約1.6兆円) in state and local tax revenue, support for almost 2,000 jobs, and broader economic growth in West Texas. The facility will use non-potable, brackish groundwater for operations rather than freshwater.
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