Chevron has signed a 20-year power purchase agreement with Microsoft to develop Project Kilby, a $7 billion co-located natural gas power plant and data center campus in Reeves County, West Texas. The facility, developed by Chevron’s subsidiary Energy Forge One in collaboration with Engine No. 1, is designed to deliver 2.67 gigawatts of dedicated, grid-free electricity to support Microsoft’s AI infrastructure, with first power delivery targeted for 2028.
To mitigate environmental impacts in the arid region, the project will utilize non-potable brackish groundwater and aims to incorporate recycled oilfield wastewater (produced water) for its operations. The plant will employ advanced emissions controls, such as Selective Catalytic Reduction systems to lower nitrogen oxide levels, and is expected to generate over $10 billion in local tax revenue and support nearly 2,000 jobs. Hardware suppliers include GE Vernova for primary turbines and Caterpillar (via Solar Turbines) for backup capacity.