Houston-based Chevron said Monday its subsidiary Energy Forge One signed an agreement with Microsoft Corp. to develop a co-located power facility in Reeves County to fuel a new data center. The massive power plant, Project Kilby, is expected to deliver about 2.67 gigawatts of capacity for one of Microsoft’s largest data centers. The Pecos campus will expand Microsoft’s global data center footprint by about 2 gigawatts and represents a multibillion-dollar investment.
Noelle Walsh, Microsoft’s president of cloud operations and innovation, said, “In Pecos, Texas, we will build a new data center campus, expanding our global data center capacity by approximately 2 gigawatts to meet strong and sustained customer demand for AI and cloud services across industries and regions.”
Energy Forge One will provided dedicated electricity for at least 20 years from a co-located, large-scale power generation facility that can power the data center without relying on the public grid. Jeff Gustavson, Chevron president of new energies, said, “Chevron is uniquely positioned to deliver power to customers with certainty and speed and at a competitive cost, leveraging Permian natural gas and our proven execution capabilities.” First power delivery is expected in 2028.
CNBC reported construction of Project Kilby has not yet started. Chevron expects to make a final investment decision later this year for its first power plant for AI.
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