Chevron Expects to Keep Microsoft Data Center Power Timeline

Chevron expects to power Microsoft’s planned data center near Pecos, Texas, on schedule despite a state pause on data-center permits. The project, known as Project Kilby, is designed to use electricity from a natural gas facility located at the site.

Chevron and Microsoft have a 20-year power agreement for the project. Chevron’s expected timeline comes as Texas reviews data-center development and its effect on the state’s power grid.

Texas Gov. Greg Abbott directed the Texas Commission on Environmental Quality to halt data-center permits until the Electric Reliability Council of Texas completes an audit. The state’s permit halt is part of that review.

Final investment decisions for Project Kilby have not been confirmed.