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Microsoft and Chevron ink 20-year energy deal
Microsoft and Chevron have signed a strategic agreement spanning 20 years to supply electricity generated from natural gas to a data center in West Texas. The facility is expected to begin production by 2028, reaching approximately 2.67 gigawatts—enough to power over 530,000 homes in Texas. The project, a collaboration between Chevron and the Encogen Fund 1, aims to enable Microsoft to meet its growing energy needs to support data center expansion and enhance its capabilities in artificial intelligence. The project features independent power generation from the main electrical grid, using gas from the Permian Basin, which reduces costs and makes it more sustainable.
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