Microsoft and Chevron Build Major Gas-Powered Data Center
Original: Microsoft and Chevron plan one of the largest gas-powered data center projects in US
Why This Matters
Reflects AI's massive energy demands and tension between tech sustainability pledges and infrastructure realities.
Microsoft and Chevron announced plans to develop a 2.67-gigawatt natural gas power plant in West Texas serving Microsoft's AI and cloud data centers under a 20-year power purchase agreement, marking one of the largest co-located gas power and data center projects in the US.
Microsoft and Chevron revealed on Monday their partnership to construct Project Kilby, a 2.67-gigawatt natural gas power plant in West Texas dedicated to powering Microsoft's AI and cloud data center operations. The project, governed by a 20-year power purchase agreement, will be among the largest co-located natural gas power and data center developments in the United States. Two large GE Vernova turbines will generate the majority of electricity, with Caterpillar subsidiary Solar Turbines providing additional power generation. The Environmental Integrity Project estimates the power plant will potentially release more than 13 million tons of carbon dioxide, 3,200 tons of criteria air pollutants, and 278,000 pounds of hazardous air pollutants. This development marks a notable shift for Microsoft, which has publicly committed to eliminating its carbon emissions by 2030, a goal that will become more challenging with this new gas-powered facility. The announcement follows months of signals from Microsoft about such a move.