en.Wedoany.com Reported - Chevron has signed a 20-year power purchase agreement with Microsoft to provide electricity for its data centers in Texas. The two companies plan to jointly develop a power generation facility named Kilby, which will be equipped with gas turbines from GE Vernova, providing 2.67 GW of installed capacity, with the remaining power supplied by Solar Turbines, a subsidiary of Caterpillar. The new facility will help reduce the data centers' reliance on the regional power grid.

The Kilby project is expected to generate over $10 billion in tax revenue for Texas and support nearly 2,000 jobs. Jeff Gustavson, President of Chevron New Energies, stated that artificial intelligence is reshaping the global economy, and abundant, affordable, and reliable energy is crucial for this transformation. He noted that Chevron can leverage its Permian natural gas facilities to supply power at competitive costs, linking traditional strengths with emerging demands to create differentiated value for shareholders and communities.

The agreement highlights the immense power demands of data center operations. Hyperscale cloud providers such as Google parent company Alphabet, Amazon, and Microsoft are racing to build computing infrastructure to train advanced AI frontier models, including OpenAI's GPT and Anthropic's Claude. Noelle Walsh, President of Microsoft Cloud Operations and Innovation, stated that the rapid growth in AI and cloud sectors, driven by customer demand, requires energy infrastructure that can scale quickly and reliably.

Amid intensifying competition in AI construction, SpaceX recently raised record funds through its IPO market debut. Elon Musk also plans to push data centers into space, using solar energy to power orbital computing infrastructure.

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