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Microsoft, Chevron and Engine No. 1 Sign Exclusive Deal for Power Supply
The project could generate 2,500 megawatts and cost about $7 billion as the companies seek dedicated electricity for AI data centers.
- On Tuesday, Microsoft Corp., Chevron Corp., and Engine No. entered into an exclusivity agreement for a proposed $7 billion natural gas-fired power plant in West Texas to supply electricity for a large data center.
- Tech companies are increasingly seeking reliable energy sources for artificial intelligence workloads by leveraging abundant natural gas resources within the Permian Basin, where excess fuel is frequently available.
- Slated for the Pecos area, the facility would initially generate 2,500 megawatts of electricity, with potential to scale up to 5,000 megawatts if the project meets its operational goals.
- Despite the exclusivity agreement, the companies confirmed no commercial terms have been finalized and there is no definitive agreement at this time, with Chevron using Energy Forge One LLC for tax abatement approaches.
- Goldman Sachs reported last year that natural gas will benefit from rising electricity demand and the requirement for 24/7 uninterrupted supply, citing its flexibility as a domestic resource for powering digital infrastructure.
11 Articles
11 Articles
Microsoft's AI Power Deal Could Lock In 2,500MW From a $7 Billion Texas Plant
Microsoft is reportedly finalising a massive deal to secure an exclusive energy supply for its expanding digital infrastructure. This multi-billion-pound collaboration in the United States aims to tackle the growing electricity demands of next-generation technology. As the race for computational dominance intensifies, this strategic move could redefine how the tech industry fuels its future. A major energy complex in West Texas is the subject of…
Chevron and Microsoft Team Up for Giant Texas Gas Power Plant
Chevron, Microsoft, and Engine No. 1 are negotiating a team-up for a multi-billion power plant in West Texas intended to power a huge data center campus, in the latest energy deal to power AI infrastructure. "Chevron, Microsoft, and Engine No. 1 have entered into an exclusivity agreement related to a proposed power generation and electricity offtake arrangement," the companies said in a statement to Bloomberg, which reported that a proposed natu…
Microsoft Reportedly Explores $7 Billion Texas Power Deal With Chevron, Engine No. 1 To Fuel AI Data Cent
Editor’s Note: This story has been updated to include a statement from Microsoft. Microsoft Corp (NASDAQ:MSFT) has reportedly entered an exclusivity agreement with Chevron (NYSE:CVX) and Engine No. 1. AI Boom Drives Urgent Need For Power In a statement to Benzinga, the three companies said that no definitive agreement or commercial terms have been finalized yet. The Satya Nadella-led tech giant is working on securing a dedicated electricity sup…
Microsoft in talks with Chevron, Engine No. 1 about $7B Texas power plant - Bloomberg (MSFT:NASDAQ)
Microsoft is in exclusive talks with Chevron and Engine No. 1 over a long-term deal for a massive energy complex in Texas to provide electricity for a large data center, Bloomberg reported.
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