Microsoft and Chevron Partner to Build 2.67 GW Natural Gas Power Plant for Data Centers

Microsoft is joining forces with oil and gas giant Chevron to construct a 2.67-gigawatt natural gas power plant in the United States. This dedicated facility will exclusively serve Microsoft's artificial intelligence and cloud data centers, tackling the persistent challenge of insufficient grid capacity that often hinders data center expansion.

The ambitious "Project Kilby" collaboration is slated to operate for 20 years, with Chevron providing a dedicated power supply from the natural gas plant to Microsoft's West Texas data centers. The project aims to commence power generation in 2028.

With a generating capacity of 2.67 GW, the plant's output is comparable to a significant portion of Indonesia's Paiton power complex. Chevron highlighted the project's scale, stating it's one of the largest integrated natural gas power plant and data center developments in the U.S.

This partnership follows months of signals about a potential collaboration between Microsoft and Chevron. Microsoft indicated that the venture aligns with sustainability goals and aims to reduce carbon emissions, despite utilizing fossil fuels.

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This project is one of the largest integrated natural gas power plant and data center developments in the United States.