Framing Analysis
Microsoft and Chevron have entered a 20-year power purchase agreement for Project Kilby, a 2.67-gigawatt natural gas facility in West Texas that will supply dedicated power to Microsoft AI and cloud data centers using GE Vernova and Solar Turbines equipment. The project is projected to emit over 13 million tons of CO2 along with criteria and hazardous air pollutants according to the Environmental Integrity Project. Microsoft maintains a 2030 carbon-elimination target while Chevron expands into dedicated power generation.