Microsoft and Chevron announced plans to build a 2.67 GW natural gas power plant in West Texas to supply electricity for Microsoft's AI and cloud data centers. The project, called Project Kilby, will use two large turbines from GE Vernova and additional equipment from Caterpillar's Solar Turbines. A 20-year agreement will have the plant directly power a Microsoft-managed data center. The plant could emit over 13 million tons of CO2 annually, according to the Environmental Integrity Project. This directly conflicts with Microsoft's pledge to be carbon neutral by 2030. The project highlights the tension between growing demand for AI computing power and corporate climate goals. Chevron called it the largest combined development of gas energy and data centers in the US. The project raises questions about how tech companies will balance rapid AI expansion with emissions reduction targets.
