Chevron
will fuel a massive Microsoft
data center in West Texas with natural gas under a 20-year agreement, the oil major announced Monday.
The data center, called Project Kilby, is expected to consume nearly 2.7 gigawatts of electricity, equivalent to the power needed to run about 2 million homes.
Most of the electricity will come from large gas turbines supplied by Chevron’s partner, GE Vernova
. Caterpillar
will also provide turbines. The power is dedicated to the data center and will not be connected to the electric grid.
“There’s really no competition with local electricity consumers,” Jeff Gustavson, president of Chevron new energies, told CNBC. “In fact, over time, as we have excess power, we plan to push that into the grid to help stabilize it.”
Project Kilby has not started construction in Reeves County yet. Chevron expects to make a final investment decision on the project later this year. The data center would start receiving power in 2028.
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