Chevron to power Microsoft data center with natural gas, signaling major energy deal for AI infrastructure—sparking gains in GE Vernova and Caterpillar stock.

What happened

Chevron announced it will supply natural gas to power a Microsoft data center in West Texas. GE Vernova will provide gas turbines and Caterpillar will supply equipment for the project, known as Project Kilby, which is expected to produce 2.7 gigawatts of electricity. GE Vernova and Caterpillar stock both rose on the news.

What to watch

Project Kilby is expected to produce 2.7 gigawatts of electricity, representing a substantial commitment to a single data center's power needs.