Microsoft and Chevron announced a 20-year power purchase agreement for a 2.67 GW natural gas power plant in West Texas, called Project Kilby. The plant will use GE Vernova turbines and supply dedicated electricity to Microsoft's AI and cloud data centers. The project is among the largest co-located gas power and data center developments in the US. The Environmental Integrity Project estimates the plant could release over 13 million tons of CO2 annually, plus thousands of tons of criteria air pollutants. This deal marks a significant shift for Microsoft, which has pledged to eliminate its carbon emissions by 2030. The 20-year contract locks in fossil fuel use for decades, raising questions about how the company will reconcile its climate goals with growing AI energy demand.
