Chevron Partners With Microsoft on Texas Power Plant

Energy corporation Chevron and Microsoft have inked a partnership which will bring a fully integrated power facility to West Texas.

Known as 'Project Kilby,' the deal is facilitated by Energy Forge One LLC, a subsidiary of the fuel giant. This 20-year power purchase agreement is designed to supply electricity to a newly established data center dedicated to Microsoft.

Chevron’s new deal

Jeff Gustavson, Chevron President of New Energies details the new agreement: “AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transformation.

“Chevron is uniquely positioned to deliver power to customers with certainty, speed and at a competitive cost, leveraging Permian natural gas and our proven execution capabilities. This project links Chevron’s traditional strengths to emerging demand, creating differentiated value for our shareholders and the communities where we operate.”

Functionality within the facility 

Project Kilby is set to become one of the premier co-located data centre and natural gas power developments in the US. The facility is designed to deliver roughly 2.67 gigawatts of capacity, utilising a modular framework that allows for phased, strategic growth. Energy for the project will be generated through General Electric (GE) Vernova turbines alongside additional electrical systems, such as those from Caterpillar (CAT) subsidiary Solar Turbines.

Project Kilby is incorporating sustainable practices by planning to use brackish, non-potable groundwater for its power plant operations. Furthermore, the facility is being designed with sophisticated air emission controls, such as Selective Catalytic Reduction systems to lower NOx emissions. To support the local environment, the centre will also implement measures to mitigate noise and light pollution for nearby residents, while progress continues on developing methods to reuse water produced during oil and gas activities.

Noelle Walsh, Microsoft president of Cloud Operations and Innovation adds: “The rapid growth we’re experiencing in AI and cloud, driven by customer demand, requires energy infrastructure that can scale quickly and reliably.

“Our agreement with Chevron helps ensure we’ll have dedicated, large-scale power to support the evolution and reliability of advanced computers. Through this partnership, we’re delighted to grow with and become a deeper part of the West Texas community.”

The project is expected to start in 2028 and will bring more than US$10bn in state and local tax revenue, support almost 2,000 jobs and drive broader economic growth. 

Automation changes

Aside from advancing in power capabilities, Chevron is also making headway in its other subsidiaries. In 2025, Chevron Marine Lubricants and Closelink, a digital platform for marine lubricant procurement, celebrated a year of full integration. Both entities deliver near-instantaneous order processing and automation in maritime procurement.

Philippe Lavarde, Managing Director at Closelink, shares: “Chevron has made a substantial investment in building a best-in-class supplier system. Through Closelink, that value becomes available to buyers exactly where they need it inside their existing workflows."

Closelink delivers four core capabilities: 

• Automated demand monitoring reduces risk with real-time alerts based on vessel schedules, stock levels, lubricant oil usage and supply opportunities
• Proactive planning helps optimise costs by consolidating deliveries at the most cost-effective ports
• Integrated ordering simplifies procurement with a lubricant-focused workflow, featuring tailored approvals and automated supplier communication 
• Visual reporting boosts transparency through live dashboards tracking performance across vessels, suppliers, ports and products