Chevron-Microsoft AI power project to create 2,000 jobs, generate $10bn in local tax revenue
A Chevron-Microsoft power project designed to support AI infrastructure is expected to create nearly 2,000 ...
Chevron-Microsoft AI power project to create 2,000 jobs, generate $10bn in local tax revenue
A Chevron-Microsoft power project designed to support AI infrastructure is expected to create nearly 2,000 jobs and generate more than $10 billion in state and local tax revenue, while incorporating water-saving measures and easing pressure on Texas’ electricity grid through dedicated on-site power generation.
Economic impact:
Project Kilby, a 2.67GW co-located power and data center development in West Texas, is expected to become one of the largest of its kind in the US. Chevron and Microsoft say the project will support nearly 2,000 jobs and contribute more than $10 billion in state and local tax revenues, boosting economic activity across the region.
Powering AI growth:
Chevron’s subsidiary, Energy Forge One, will supply dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement. Built in phases, the project will primarily use GE Vernova gas turbines, with additional generation from Caterpillar’s Solar Turbines, providing reliable power while reducing strain on the regional grid.
Water stewardship, emissions:
The project will rely on non-potable brackish groundwater instead of freshwater for operations, while Chevron is also advancing the reuse of produced water from oil and gas activities. The facility will incorporate selective catalytic reduction systems to lower NOx emissions, alongside measures to reduce noise and light impacts on surrounding communities.
What’s next:
Chevron expects to take a final investment decision by the end of 2026, with first power delivery targeted for 2028. The company expects the investment to generate mid-teen returns and provide a diversified revenue stream beyond traditional oil and gas markets.
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