Microsoft and Chevron have signed a 20-year power purchase agreement to provide natural-gas fired power for a proposed data center in West Texas. The facility is expected to be one of the largest in the United States.
The 2.7-gigawatt project will feature its own on-site power plant, which will be fueled by Chevron’s local natural-gas production.
This move highlights Microsoft's willingness to invest in fossil fuels to meet the power demands of its data centers, locking in decades of carbon emissions from the new plant. For Chevron, the deal represents a sharp turn, as the company had previously built its AI plans on renewables and nuclear energy.