Chevron to Power Microsoft Data Center with Natural Gas

Chevron will power a planned Microsoft data center in Texas using natural gas (CNBC).

What’s going on: The endeavor, “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 for the undertaking, on which construction has yet to begin, will come from Chevron’s partner GE Vernona’s gas turbines; Caterpillar will provide turbines as well.
• The power infrastructure will be built and located at the West Texas site.

The details: The data center is expected to start receiving power from the project in 2028.

• Chevron will make a final investment decision later this year.

The backdrop: “Chevron is positioned to quickly and reliably deliver natural gas from the Permian Basin, located in West Texas and southeastern New Mexico, to data centers at a competitive cost, said Jeff Gustavson, Chevron’s president of new energies.”

Abundance: “U.S. natural gas is a plentiful, reliable source of baseload energy—and projects like this show why energy abundance and affordability are essential to America’s manufacturing and technology leadership,” said NAM Vice President of Domestic Policy Chris Phalen.  

• “Project Kilby is the latest example of manufacturers and producers in America coming together to meet the challenge of growing energy demand with innovation and partnership. Continuing to advance the administration’s energy dominance policies that maintain strong domestic production will be critical to keeping energy affordable, strengthening our industrial base and fueling America’s race to lead in artificial intelligence.”