Chevron expands into power projects for US data centers

Chevron is pursuing additional natural‑gas‑fired power projects to supply electricity to data centers across the United States. The company recently signed an agreement for Project Kilby, a 2.67‑gigawatt facility that will provide dedicated power to Microsoft’s data‑center campus in Pecos, Texas, and is expected to begin delivering electricity in 2028.

Chevron’s president of new energies, Jeff Gustavson, said the oil major is also evaluating similar projects in the Midwest, Gulf Coast, Rocky Mountain region and Utah, where Chevron already operates a hydrogen facility. The new ventures would create a revenue stream that is not tied to the volatility of Chevron’s core oil and gas business, though analysts note it is too early to gauge the long‑term significance. The company aims to decide on final investments by the end of the year, with the potential to expand capacity beyond the initial 2.67 GW.

The move reflects broader interest from oil and gas firms to tap the record‑high electricity demand driven by AI‑intensive data‑center growth, offering their expertise in large‑scale energy projects to technology customers such as Microsoft.