Chevron Signs Long-Term Power Deal with Microsoft
On June 22, 2023, Chevron entered a 20-year power purchase agreement (PPA) with Microsoft to supply electricity for a new AI-focused data center in Texas as part of Project Kilby. The agreement will provide around 2.67 gigawatts (GW) of on-site power, primarily from GE Vernova’s gas turbines. This deal is expected to generate stable revenue for Chevron, insulating it from volatile commodity prices.
Chevron will supply natural gas from its Permian Basin production directly to the power plant, with operations managed through its subsidiary Energy Forge One. The facility is slated to begin operations by 2028, enabling Chevron to redirect natural gas that would otherwise be flared off, thereby creating a new, high-margin revenue stream aligned with the growing demand for reliable energy from hyperscale data centers.
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