Woofun AI reports that Microsoft and Chevron have executed a 20-year power purchase agreement to supply energy for a new data center facility in West Texas. The arrangement centers on the Kilby project, which is slated to deliver 2.67 gigawatts of generation capacity utilizing General Electric's NovaLT and Solar Turbines technology. Chevron anticipates finalizing its investment decision by the end of 2026, with initial power delivery scheduled for 2028. The project is projected to generate more than $10 billion in tax revenue and create approximately 2,000 jobs.

Concurrently, Microsoft disclosed plans to develop a new data center campus in Pecos, Texas, involving billions of dollars in capital expenditure over a five-to-seven-year period. This expansion is expected to yield over 6,000 construction positions. Once operational, the campus will function in tandem with an on-site natural gas power plant. Following the announcement, Chevron shares appreciated by 1.17% in pre-market trading.