Chevron Signs 20-Year Natural Gas Deal with Microsoft
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Source: Yahoo Finance
- Long-Term Gas Agreement: Chevron has signed a 20-year natural gas supply agreement with Microsoft to power the Kilby data center in Reeves County, Texas, which is expected to consume nearly 2.7 gigawatts of electricity, equivalent to the needs of about 2 million homes, highlighting strong demand potential for Chevron's natural gas business.
- Power Infrastructure Development: The power infrastructure will be located directly at the data center site, primarily supplied by large gas turbines from Chevron's partner GE Vernova, with Caterpillar also providing turbines, enhancing the project's implementation efficiency and reliability.
- Investment Decision Timeline: Chevron expects to make a final investment decision on the project this year, with power delivery targeted for 2028, indicating the company's proactive approach to future energy demand.
- Market Shift Indicator: This agreement signals a strategic shift in how hyperscale data centers approach power supply, particularly as AI-driven electricity demand grows rapidly, presenting a new growth channel for Chevron's natural gas business.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 379.400
Low
500.00
Averages
631.36
High
678.00
Current: 379.400
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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