Microsoft (MSFT) Secures 20-Year Natural Gas Supply from Chevron (CVX) for Texas AI Data Center

Chevron (CVX) announced on June 22, 2026, a 20-year agreement to supply natural gas to Microsoft's (MSFT) "Project Kilby" data center in West Texas. This partnership highlights the increasing demand for stable energy supplies driven by the artificial intelligence (AI) boom. The facility, located in Reeves County, Texas, is projected to consume approximately 2.7 gigawatts (GW) of power, equivalent to about 2 million households. Most of the electricity will come from GE Vernova gas turbines, with equipment supplied by Caterpillar, all situated directly on the data center campus. Chevron expects to make a final investment decision later in 2026, with power delivery potentially beginning by 2028. Microsoft projects its capital expenditure this year to reach $190 billion, a 61% increase from 2025, reflecting rapid AI infrastructure investment.