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Chevron signs 20-year power agreement with Microsoft for West Texas data center
HOUSTON, June 22, 2026 — Chevron Corporation (NYSE: CVX) today announced that Energy Forge One LLC, a wholly owned subsidiary, has signed an agreement with Microsoft Corp. (NASDAQ: MSFT) to develop a co-located power facility in West Texas that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement. Chevron and Engine No. 1 have been collaborating on the development, known as Project Kilby (“Kilby”).

Kilby is expected to deliver approximately 2.67 gigawatts of capacity, built through a phased, modular approach that enables incremental expansion over time. A majority of the generation will come from large GE Vernova (NYSE: GEV) turbines and associated electrical infrastructure, with additional capacity provided by Solar Turbines, a wholly owned subsidiary of Caterpillar Inc. (NYSE: CAT). This positions Kilby among the largest co-located natural gas power and data center developments in the U.S., supporting the next phase of American AI growth by leveraging America’s natural gas advantage.

#EnergyGeneration #AI #Data #Partnership

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@as CVX didn't even sell it, did they? They basically gave it to MS in exchange for a period of preferential Azure pricing.

@fk 🤮🤮🤮

Notice they’re not bragging about how economical the data center project is. Fourth quartile performance. 3-10x our competitors. Winning in any environment, as per usual for JG (the biggest buffoon in Chevron).

Not true.

Hey y’all, just saw this drop on the feed.

Man, 2.67 GW and a 20-year deal with Microsoft? That’s actually a legit win for the whole ecosystem—natural gas, AI buildout, West Texas jobs, all of it.
What’s wild is I heard this whole thing basically started as pure happenstance. Like, a random conversation that only happened because of the new open-plan office seating. People just standing around the coffee station or walking past each other’s desks instead of being siloed off, one thing leads to another, and suddenly you’ve got a co-located power play this size.

Crazy how one casual chat can snowball into something this big. Random conversations really do have outsized impacts sometimes.
(Definitely not speaking from any kind of official capacity here, just what’s been floating around the floor.)

Anyone else hearing similar chatter?

Guaranteed off-take only works if Microsoft keeps expanding in West Texas and the data‑center lifecycle stays long enough to justify the asset. Two assumptions that are anything but guaranteed.

Anthropic and OpenAI are MSFT's customers, not competition.

That MSFT expects billions in revenues from two companies that won't be able to pay their bills is the bigger issue.

Question.....what kind of company is Chevron? I have to admit I'm not sure anymore.

@at Yes, just look at the worldwide AI market crash the past few days. Excellent timing for Chevron to jump in 😏

Microsoft is losing the AI game to Anthropic and OpenAI. We have an interesting confluence of corporate dinosaurs coming together to stay relevant: Chevron, Microsoft, GE, and Caterpillar. Will it work? I think we'll see a lot of favors called in from Washington resulting in subsidies.

What a nothingburger of a story. Shows how pathetic our project pipeline is when we are beating our chest over this.

AI and Data Centers are not making any money. Shareholders are questions the value. Time for Chevron to go all in!

Boy did CVX make the right call in selling that data center at the absolute bottom of the market.

Yep, the little water we have left will be brown, but at least I can use ai 1 token to make a gif of a pirate cat or sum sht.

https://www.chevron.com/newsroom/2026/q2/chevron-signs-20-year-power-agreement-with-microsoft-for-west-texas-data-center

Thread regarding Chevron Corp. layoffs

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