Microsoft’s West Texas Data Center Project Targets 2028 Start

Microsoft’s Project Kilby, a planned West Texas data center and power development with Chevron and Engine No.1, is scheduled to begin construction in 2028 after a local pause on data center approvals affected the project.

Microsoft plans to invest $117 billion in 2026 to build computing capacity for AI and cloud services. Project Kilby is planned to reach full operation in 2031.

Microsoft cloud infrastructure chief Noelle Walsh said the company will pay the electricity costs associated with its data center expansion, without government subsidies or passing those expenses to other electricity customers. The statement echoes Microsoft’s earlier power-cost commitment.

Chevron said Project Kilby would create local jobs and provide stable tax revenue. Microsoft has said data center development needs to bring host communities a net benefit to remain sustainable.