Chevron signs 20-year power deal with Microsoft for 2.67 GW West Texas plant

Chevron's subsidiary Energy Forge One signed a 20-year power purchase agreement with Microsoft on 22 June 2026 for Project Kilby, a co-located gas-fired plant in West Texas that will supply a Microsoft-operated data center. The plant is being developed with Engine No. 1 and will be built in phases to about 2.67 GW, burning Permian gas. The project targets mid-teen returns, with a final investment decision expected by the end of 2026 and first power in 2028.

• Counterparty: Microsoft, under a 20-year power purchase agreement
• Capacity: about 2.67 GW, built in phases
• Timing: FID expected by end-2026; first power targeted for 2028
• Chevron targets mid-teen returns; company cites more than $10 billion of state and local tax revenue