Chevron Partners with Microsoft for Natural Gas Power Supply
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Long-Term Power Agreement: Chevron announced a 20-year agreement with Microsoft to supply natural gas for the Project Kilby data center in West Texas, which is expected to consume nearly 2.7 gigawatts of electricity, equivalent to the needs of about 2 million homes.
- Power Infrastructure Development: The electricity for the data center will primarily come from large gas turbines provided by Chevron's partner GE Vernova, with Caterpillar also supplying turbines, showcasing Chevron's robust capabilities in power infrastructure development.
- Investment Decision Timeline: Although construction for Project Kilby has not yet begun, Chevron expects to make a final investment decision later this year, with plans to start supplying power to the data center in 2028, indicating a forward-looking approach to future energy demands.
- AI-Driven Energy Demand: Microsoft plans to invest $190 billion in data center construction this year, a 61% increase over 2025, reflecting strong demand driven by rapidly growing artificial intelligence applications, while also indicating a diversification strategy in energy sources, including reliance on natural gas.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 175.980
Low
158.00
Averages
176.95
High
206.00
Current: 175.980
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
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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- Co-location Advantage: The power plant will be co-located with the data center, allowing direct electricity supply without impacting the power grid, which opens new opportunities for Chevron in the burgeoning artificial intelligence sector.
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