Chevron to power Microsoft data center

Chevron Corporation has tentatively agreed to provide 2.7 gigawatts of electricity to a Microsoft data center in West Texas. Chevron is partnering with GE Vernova to build a natural gas-powered electric power plant co-located with the data center, under a 20-year agreement. The deal bypasses traditional utility companies and could serve as a model for future AI data center power supply. Chevron will supply natural gas from its operations, while GE Vernova provides the turbines. The agreement is subject to final approval later in 2026. Analysts note that this is a modest but potentially significant step for Chevron to diversify beyond oil and gas, and it positions the company to benefit from growing AI-driven electricity demand. Research from Goldman Sachs and PwC highlights the expected surge in data center power consumption and natural gas demand.