Chevron and Microsoft strike power deal to support Texas data-centre project Project Kilby

Chevron and Microsoft have signed a power agreement tied to a new Texas data-centre project called Project Kilby, according to a report published Tuesday by Power Technology.

The deal is expected to underpin a large-scale buildout. The project is described as being designed to deliver approximately 2.67 gigawatts of capacity, a scale that would put it among the bigger new data-centre developments in the region.

Project Kilby’s planned delivery method is also highlighted. The facility will be built using a phased, modular approach, which generally means power and infrastructure are brought online in stages rather than all at once, to reduce schedule risk and align construction with demand.

While the report does not provide additional technical detail in the information provided here, the emphasis on modular phasing is consistent with a growing pattern in the industry, where developers seek to match electrical availability, permitting timelines, and equipment deliveries to the ramp-up of server capacity.

For Microsoft, the arrangement points to how major cloud providers are securing long-term power access to support data-centre expansion. For Chevron, participating in data-centre power arrangements reflects the broader shift of energy companies into infrastructure and demand-adjacent partnerships, particularly in electricity-heavy sectors.

Both companies face the same fundamental constraint: power availability. Data centres can require steady, long-duration electricity at high levels, and new projects often depend on securing generation and grid capacity well before servers are installed.

The report does not specify the contract term, pricing structure, or whether the power is sourced from on-site generation, contracted renewables, or utility supply. It also does not disclose the expected completion date, the location within Texas, or how much of the 2.67 gigawatts will be available in each phase.

As the market watches new buildouts, Project Kilby’s phased approach and large target capacity may be a bellwether for how quickly operators can translate power contracts into deployed compute. The next indicates to monitor are the project’s milestone schedule, any filings or permits related to the power delivery plan, and updates on the phases as they begin construction and energization.