Microsoft and Chevron plan one of the largest gas-powered data center projects in US

Microsoft and Chevron plan one of the largest gas-powered data center projects in US

In a significant move for the tech and energy sectors, Microsoft and Chevron revealed plans on Monday to construct a massive 2.67-gigawatt natural gas power facility in West Texas. This power plant is designed to support Microsoft's AI and cloud computing data centers. Under a long-term, 20-year agreement, the facility will supply dedicated electricity specifically for a data center operated by Microsoft. The majority of the power will be generated using two large GE Vernova turbines, with additional support from Solar Turbines, a subsidiary of Caterpillar. This project marks a notable collaboration in the energy landscape, especially given its scale as one of the largest combined natural gas power and data center projects in the United States, according to Chevron's press release. While Microsoft has hinted at this development for several months, it represents a considerable pivot for a company that has publicly championed sustainability initiatives. Microsoft has committed to achieving carbon neutrality by 2030, posing challenges given the environmental impact projected from Project Kilby. The Environmental Integrity Project estimates that the facility could emit over 13 million tons of carbon dioxide, along with significant quantities of air pollutants, including 3,200 tons of criteria air pollutants and 278,000 pounds of hazardous air pollutants.

Sources : TechCrunch

Published On : Jun 22, 2026, 20:45

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