According to Chevron, Microsoft signed a long-term energy purchase agreement on Monday to fuel a massive new data center project in West Texas. The facility, dubbed Project Kilby, is expected to deliver 2.7 gigawatts of power capacity—equivalent to electricity for 2 million households. GE Vernova will provide the majority of natural gas turbines for the plant, which won't draw from the public grid.
The project represents a major proof of concept for off-grid power solutions serving AI data centers. GE Vernova's backlog totaled $163 billion at the end of March, with the company expecting to reach $200 billion by the end of 2027. The Microsoft data center is not expected to start receiving power until 2028.