Chevron eyes more deals to power US data centers

Chevron is looking for more deals to supply power to U.S. data centers, building on its two-decade contract to generate electricity for a Microsoft site in West Texas. The company said it signed an agreement to develop Project Kilby, a natural gas-fired power facility with 2.67 gigawatts of capacity dedicated to Microsoft’s data center campus in Pecos, Texas. Chevron said the project is the first of its kind for the company and could be large enough to power a city the size of San Francisco. CEO and new energies president Jeff Gustavson told Reuters Chevron is also assessing opportunities in the Midwest and Gulf Coast, and near Colorado’s Rocky Mountains, with possible additional deals involving Microsoft and other customers. Chevron expects a final investment decision by the end of the year, with first power targeted for 2028. Kilby will use seven GE Vernova turbines and smaller Caterpillar turbines, and it may expand beyond initial capacity.