Microsoft Unlocks AI Expansion With Chevron 2.67 GW Power Deal

As of June 25, coverage highlights how Microsoft’s Chevron partnership resolves AI’s core power bottleneck through dedicated generation. The 20-year agreement for Project Kilby, first announced June 23, delivers 2.67 GW of co-located natural gas capacity in West Texas, bypassing grid delays and securing predictable costs through 2048. The deal, with FID targeted by end-2026 and first power in 2028, positions Microsoft ahead of rivals pursuing slower nuclear routes while supporting Azure margins and creating long-term revenue for Chevron.