Chevron to build 2.67-gigawatt gas plant for Microsoft AI data center, but CVX stock declines
Chevron's Energy Forge One will build a 2.67-gigawatt natural gas power plant in West Texas to supply a Microsoft data center under a 20-year contract. Chevron shares fell following the announcement.
Chevron Corporation signed a long-term power purchase agreement with Microsoft Corporation under which Chevron's unit Energy Forge One LLC will build a 2.67-gigawatt natural gas power plant in West Texas to supply electricity directly to a Microsoft-operated artificial intelligence data center. The deal is structured as a 20-year contract under Project Kilby.
The agreement marks Chevron's entry into dedicated power generation for hyperscale data center operators, bypassing traditional utility infrastructure. Energy Forge One will own and operate the facility, which will deliver power exclusively to Microsoft's AI computing operations in the region. The 2.67-gigawatt capacity is sufficient to power roughly two million homes and represents one of the largest direct corporate power purchase agreements disclosed to date.
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