Chevron has entered into a 20-year agreement to supply natural gas for Microsoft’s massive Project Kilby data center in West Texas, the oil major announced Monday.
The facility is expected to consume nearly 2.7 gigawatts of power, representing one of the largest single-site energy commitments in the tech sector’s recent expansion.
The deal underscores the growing intersection between big tech and traditional energy infrastructure.
As artificial intelligence workloads drive unprecedented power demand, hyperscalers are increasingly turning to fossil-fuel-backed generation to secure reliable, baseload capacity.
For Chevron, the contract provides a long-duration revenue stream tied to the data center’s operational life, insulating a portion of its gas portfolio from spot-market volatility.
Project Kilby’s scale is significant for regional energy markets.