Microsoft is planning a 2GW data center campus in Texas and has secured a long-term power arrangement with Chevron to support the project.
The company described the development as a "multibillion-dollar data center campus", with investment expected over the next five to seven years. At full buildout, the project is expected to support around 6,000 construction jobs. Specific details about the campus have not yet been disclosed.
Chevron will supply up to 2.67GW of power behind the meter under a 20-year Power Purchase Agreement (PPA). The power capacity is set to increase incrementally as the power plant is built in phases. The project is being developed by Chevron and Engine No. 1 and will operate under the name Project Kirby. First power delivery is expected in 2028.
Microsoft said the Texas site will be similar to its campus in Phoenix, Arizona.
The agreement follows a series of earlier steps between the companies. Chevron and Engine No. 1 first partnered in January 2025 to develop up to 4GW of gas power capacity for data centers across the US. In November, Chevron selected West Texas as the location for its first natural gas-fired power plant serving the data center sector. In April, the companies and Microsoft signed an "exclusivity agreement" that outlined the basis for a future energy supply deal.
Project Kirby will rely mainly on large turbines made by GE Vernova, along with associated electrical infrastructure. Additional capacity will come from Solar Turbines, a Caterpillar subsidiary. Chevron and Engine No. 1 had previously secured seven GE Vernova 7HA natural gas turbines as part of their original partnership. The exact model was not disclosed, though GE Vernova offers versions with capacities of 290MW, 384MW, and 430MW.
"AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transformation", said Jeff Gustavson, Chevron president of New Energies. "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."
Noelle Walsh, Microsoft president of Cloud Operations + Innovation, added: "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 compute."
The campus is planned for Pecos in West Texas near the New Mexico border. The area is not described as a typical data center market in Texas, though in August 2025, Pacific Energy announced plans for a 5GW off-grid power project in nearby Pecos County designed to serve hyperscale data centers.
Chevron said the project would bring significant local economic benefits, including more than $10 billion in state and local tax revenue. The company also said it plans to use non-potable, brackish groundwater sources for power plant operations and is working on solutions to reuse produced water from oil and gas operations.
Microsoft already has a sizable data center presence in Texas, with operational facilities and projects under development. Recent efforts include projects in Medina and Castroville. In March 2026, the company also agreed to lease some 700MW of capacity from Crusoe’s data center campus in Abilene, Texas.
