{"id":82801,"date":"2026-06-23T07:39:22","date_gmt":"2026-06-23T07:39:22","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/82801\/"},"modified":"2026-06-23T07:39:22","modified_gmt":"2026-06-23T07:39:22","slug":"chevron-signs-deal-with-microsoft-to-power-ai-data-center-that-could-become-one-of-the-countrys-largest-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/82801\/","title":{"rendered":"Chevron Signs Deal with Microsoft to Power AI Data Center That Could Become One of the Country&#8217;s Largest"},"content":{"rendered":"<p>NEED TO KNOW<\/p>\n<p>Chevron struck a 20-year agreement with Microsoft to power what could become one of the country&#8217;s largest AI data centers in West Texas<\/p>\n<p>The data center will get its energy from natural gas produced from the energy company Joulent&#8217;s fields in the area<\/p>\n<p>&#8220;Leadership in the AI era will be determined by who can deliver energy and compute the fastest, most reliably, and at the lowest cost,&#8221; Chris James, the founder and CEO of Joulent, said in a news release<\/p>\n<p>Chevron has struck a 20-year agreement with Microsoft to power a large AI data center in West Texas.\u00a0<\/p>\n<p>On Monday, June 22, the multinational energy corporation announced that it signed an agreement to develop and provide dedicated electricity to a massive Microsoft-operated data center known as Project Kilby, according to a <a data-ylk=\"slk:news release;elm:context_link;itc:0;sec:content-canvas;\" href=\"https:\/\/www.chevron.com\/newsroom\/2026\/q2\/chevron-signs-20-year-power-agreement-with-microsoft-for-west-texas-data-center\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">news release<\/a>.\u00a0<\/p>\n<p>&#8220;AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transportation,&#8221; Jeff Gustavson, Chevron&#8217;s president of new energies, said in the release. &#8220;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.&#8221;<\/p>\n<p><img alt=\"A sign displays the prices of unleaded gasoline at a Chevron gas stationCredit: David Paul Morris\/Bloomberg via Getty\" loading=\"lazy\" width=\"960\" height=\"640\" decoding=\"async\" data-nimg=\"1\" class=\"standard-img w-full w-full h-auto\" style=\"color:transparent\" src=\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/06\/https:\/\/media.zenfs.com\/en\/aol_people_articles_471\/4558632faa286f2e433df7d84cd6a3a7.jpeg\"\/><\/p>\n<p>A sign displays the prices of unleaded gasoline at a Chevron gas station<br \/>Credit: David Paul Morris\/Bloomberg via Getty<\/p>\n<p>According to the <a data-ylk=\"slk:Wall Street Journal;elm:context_link;itc:0;sec:content-canvas;\" href=\"https:\/\/www.wsj.com\/business\/energy-oil\/chevron-strikes-power-deal-with-microsoft-for-west-texas-ai-data-center-3751de34\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">Wall Street Journal<\/a>, the oil company will work with the energy company Joulent to build the 2.7-gigawatt campus on more than 2,000 acres of land in Reeves County.<\/p>\n<p>The amount of electricity produced by Kilby&#8217;s on-site power plant is equivalent to the power needed to run approximately 2 million homes, according to <a data-ylk=\"slk:CNBC;elm:context_link;itc:0;sec:content-canvas;\" href=\"https:\/\/www.cnbc.com\/2026\/06\/22\/chevron-cvx-microsoft-msft-natural-gas-data-center.html\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">CNBC<\/a>.\u00a0<\/p>\n<p>The data center will get its energy from natural gas produced from Joulent&#8217;s fields in the area as part of its first big AI data-center project, according to a separate <a data-ylk=\"slk:news release;elm:context_link;itc:0;sec:content-canvas;\" href=\"https:\/\/www.businesswire.com\/news\/home\/20260622143711\/en\/Joulent-Launches-to-Deliver-Multi-Gigawatt-Power-Solutions-for-American-Innovation\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">news release<\/a>.<\/p>\n<p>A majority of the generation will come from large GE Vernova gas turbines, which will then be supplemented by turbines made by a subsidiary of Caterpillar Inc.<\/p>\n<p>Sign up for <a data-ylk=\"slk:From the Editor;elm:context_link;itc:0;sec:content-canvas;\" href=\"https:\/\/people.com\/from-the-editor-newsletter-sign-up-form-11953046\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">From the Editor<\/a>, our free weekly newsletter from PEOPLE&#8217;s Editor-in-Chief, Charlotte Triggs.<\/p>\n<p>In addition to supporting digital infrastructure, Chevron said that the data center is expected to generate economic benefits for the region \u2014\u00a0including bringing in more than $10 billion in tax revenue and creating nearly 2,000 jobs.<\/p>\n<p>While Microsoft has invested &#8220;primarily&#8221; in renewable energy for its data centers, CNBC reported, the company is now searching for alternatives \u2014 including nuclear power, and now natural gas \u2014 to meet the &#8220;24\/7 demand&#8221; of the projects.<\/p>\n<p>The Chevron announcement comes as Microsoft embarks on a buildout of data centers for artificial intelligence, according to CNBC, which reported that the company &#8220;plans $190 billion in capital expenditures this year,&#8221; marking a 61% increase from 2025.<\/p>\n<p>The data center is expected to start receiving power in 2028.\u00a0<\/p>\n<p>Read the original article on <a data-ylk=\"slk:People;elm:context_link;itc:0;sec:content-canvas;\" href=\"https:\/\/people.com\/chevron-strikes-deal-with-microsoft-to-power-massive-ai-data-center-12004206\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">People<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"NEED TO KNOW Chevron struck a 20-year agreement with Microsoft to power what could become one of the&hellip;\n","protected":false},"author":2,"featured_media":82802,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[420,7829,44596,39,44700,8305,320,7828,7546],"class_list":["post-82801","post","type-post","status-publish","format-standard","has-post-thumbnail","category-microsoft","tag-azure","tag-azure-ai","tag-chevron","tag-data-centers","tag-energy-company","tag-gas-turbines","tag-microsoft","tag-microsoft-ai","tag-natural-gas"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/82801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=82801"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/82801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/82802"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=82801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=82801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=82801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}