Chevron and Microsoft announced June 22 a 20-year agreement in which Chevron will supply natural gas power to Microsoft’s Project Kilby data center in Reeves County, Texas [1, 2, 3]. The power plant is expected to generate about 2.67 to 2.7 gigawatts of electricity primarily through GE Vernova turbines, with additional turbines from Caterpillar/Solar Turbines [1, 2].
Project Kilby is described as one of the largest co-located natural gas power and data center developments in the U.S. [2]. Although construction has not yet started, the data center is planned to begin receiving power from the natural gas plant in 2028 [1].
Microsoft plans to spend $190 billion in capital expenditures in 2026, a 61% increase over 2025, including expanding its data center footprint [1]. While the company has previously invested in renewable energy and nuclear power, it is turning to natural gas for this project [1, 2].
Environmental Integrity Project estimates Project Kilby could emit over 13 million tons of CO2, 3,200 tons of criteria air pollutants, and 278,000 pounds of hazardous air pollutants, raising concerns about environmental impact [2].
The next major milestone is the planned start of power delivery to the data center in 2028, when Project Kilby will begin operations using Chevron-supplied natural gas energy [1].
