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Project Kilby Plans Texas Power Plant
Coverage from CNBC, Reuters, and others
Articles
37
Active Days
76
The Topic
Chevron and Microsoft are advancing Project Kilby, a planned natural-gas power facility in Reeves County, Texas, that would provide dedicated electricity to Microsoft’s expanding data center campus under a 20-year agreement. The project is expected to reach about 2.67 gigawatts, deliver first power in 2028, and reduce reliance on the local grid, although Chevron has not yet made its final investment decision. The same reporting points to broader interest from energy companies in serving data centers directly, alongside continuing concerns over emissions and local impacts such as noise.
First Article: 05/12/26
Latest Article: 07/26/26
Summary
- Project Kilby would supply dedicated natural-gas power to Microsoft’s data center campus in Pecos, Texas, under a 20-year agreement.
- The facility is expected to ramp to about 2.67 gigawatts and deliver first power in 2028, supporting roughly 2 gigawatts of planned Microsoft capacity expansion.
- The behind-the-meter design is intended to reduce the campus’s dependence on the public grid; excess generation could potentially be exported later.
- Chevron is evaluating similar data center power arrangements in the Midwest, Gulf Coast, Rockies, Utah, and additional parts of West Texas.
- GE Vernova and Caterpillar’s Solar Turbines are expected to provide the project’s turbine equipment, reflecting tight demand for heavy-duty generation assets.
- Project Kilby faces unresolved questions over final investment approval, emissions, and the compatibility of dedicated gas generation with Microsoft’s carbon-reduction commitments.
- Separately, Hyperscale expanded its Dowagiac, Michigan, campus and contracted for 20 megawatts of AI compute while a resident noise lawsuit remains pending.
History
The update mainly adds that Chevron has not yet approved the project and broadens the framing to unresolved execution and community-impact issues. It also confirms the same West Texas power deal while slightly extending Chevron’s parallel search for similar data-center power arrangements.
Project Kilby is now more specifically defined as a colocated 2.67-gigawatt natural-gas facility for Microsoft, with a clearer execution path and broader implications. The update also adds Chevron’s wider search for similar data-center power deals and sharper environmental scrutiny.
Featured
06-22-2026
Chevron and Microsoft agreed in a 20-year natural gas power deal for a West Texas data center project, with GE Vernova turbines providing most generation and Caterpillar solar turbines adding capacity.
06-22-2026
Chevron and Microsoft agreed on Project Kilby in West Texas to provide 20 years of dedicated gas power for the Microsoft Pecos data center campus, with first power expected in 2028.
06-26-2026
Chevron is building Project Kilby in Pecos, Texas, targeting 2028 first power for Microsoft’s data center while planning additional U.S. power deals.
Timeline: 76 Days
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Additional Articles
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Microsoft and Chevron announced Project Kilby in West Texas in a 20-year PPA to supply dedicated electricity for Microsoft AI and cloud data centers.
Microsoft signed a long-term energy purchase agreement with Chevron in 2025 to power Project Kilby in Reeves County, Texas, targeting 2.7 GW by 2028.
OpenAI announced Project Camellia in Effingham County, Georgia, aiming for up to 3.2 GW phased power from 2028 to 2032 with Georgia Power demand response and closed-loop water.
Microsoft and Chevron signed a two-decade PPA for 2.67 GW of on-site natural-gas power supporting Project Kilby in Pecos, Texas.
Chevron and Microsoft agreed on a 20-year natural-gas power supply for the Project Kilby data center in Reeves County, Texas, with initial delivery targeted for late 2028.
Chevron said Project Kilby, a 2.67-gigawatt natural gas power facility, will supply Microsoft data-center electricity in Pecos, Texas with first power expected in 2028.
Chevron and Microsoft signed a 20-year dedicated electricity agreement for Project Kilby, planned as a 2.7 GW AI data-center campus in Reeves County, Texas.
TGS links Microsoft and Chevron's 2.67 GW Project Kilby in Reeves County, Texas, to dedicated onsite natural gas generation amid forecasted AI-driven load growth.
Microsoft secured a 20-year PPA with Chevron subsidiary Energy Forge One LLC in Pecos, Texas, for a 2 GW co-located power-and-data-center campus.
Chevron signed a 20-year power agreement with Microsoft for Project Kilby, a phased 2.67 GW co-located generation facility in Reeves County, Texas.
OpenAI’s Project Camellia in Savannah-area Georgia will seek up to 3,200 MW from Georgia Power and use closed-loop cooling amid community protests and ratepayer-cost disputes.
OpenAI’s Project Camellia in Effingham County, Georgia, and a Savannah River Site data center selection in Barnwell County, South Carolina, advance AI compute facilities near Beaufort County amid power and water concerns.
Microsoft plans a 2GW Pecos, Texas data center campus, with Chevron delivering up to 2.67GW behind-the-meter under a 20-year PPA for Project Kirby in 2028.
OpenAI is reportedly discussing a 10-gigawatt Ohio federal-land data center campus lease, with SB Energy development and anticipated Nvidia hardware and financial guarantees.
OpenAI seeks to lease a 10-gigawatt Ohio data center campus developed by SB Energy, with an initial phase expected to start operations in 2028.
Microsoft planned a Cheyenne, Wyoming data center campus and contracted long-term renewable power, including an 835-megawatt PPA tied to the PJM region and Three Mile Island restart.
Microsoft reported a 25 percent 2025 emissions increase tied to AI data center expansion, with Chevron’s 20-year West Texas power plan mentioned as a subsequent deal.
OpenAI is reportedly negotiating a 20-year lease for a proposed 10-gigawatt data center campus on federal land in southern Ohio, with Nvidia expected to supply hardware and guarantee financing.
OpenAI announced Project Camellia, a 3.2 gigawatt data center planned for Rincon, Georgia, with up to 1,000 megawatts of demand response and closed-loop cooling.
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OpenAI held a July 23 public open house in Effingham County, Georgia, for Project Camellia after announcing a $20 billion data center campus.
Hyperscale acquired 48.5 acres near Dowagiac, Michigan, to expand campus capacity for a 20 MW AI compute contract while a class action alleges harmful noise impacts.
Chevron and Microsoft announced Project Kilby in Reeves County, Texas, with a 20-year natural gas agreement and gas-turbine power for 2.7 GW starting in 2028.
Chevron, Microsoft, and Joulent launched Project Kilby with a 20-year natural gas power supply for an AI data center in West Texas.
Chevron and Microsoft announced a co-located natural gas power plant and data center project in the United States to secure dedicated long-term energy capacity for AI workloads.
Southern Company agreed in a 25-year contract to supply power for OpenAI's planned data center in Georgia as construction proceeds.
Chevron plans Project Kilby in Pecos, Texas, to supply Microsoft with 2.67 GW of dedicated data center electricity, with first power expected in 2028.
Chevron, with Engine No. 1, announced a natural-gas behind-the-meter power project to supply a co-located Microsoft data center as AI-driven load grows.
Microsoft plans a new Pecos, Texas data center campus on June 22, targeting about 2 gigawatts of added capacity over 5 to 7 years.
Hyperscale Data said customer negotiations are nearing power and infrastructure lease agreements for a Michigan Nvidia GPU compute campus supporting an initial 30 MW AI buildout.
Effingham County officials announced OpenAI will build a data center campus within Savannah Gateway Industrial Hub in Effingham County, Georgia, with a July 23 public open house.
Morgan Stanley analysts Adam Wood and Josh Baer said Microsoft earnings depend on Azure and Copilot momentum supported by data center expansion, amid OpenAI-related uncertainty, as Microsoft reports on July 29.
Microsoft announced a March 2025, 20-year 835-megawatt PJM power purchase agreement to restart Three Mile Island as the Crane Clean Energy Center for AI data centers.
Microsoft announced 420 additional acres for data center expansion near Cheyenne, Wyoming, including parcels near Laramie Community College and North Range Business Park.
Microsoft announced a 3,200-acre data center expansion southeast of Cheyenne, Wyoming, purchasing nearby acreage associated with Cynthia Lummis family holdings while water and energy questions remain.