Microsoft, Chevron, and Engine No. 1 have signed an exclusivity agreement that could provide up to 2.5GW of natural gas power for a new data center, though commercial terms have yet to be finalized.
Bloomberg first reported that the agreement is linked to a proposed $7 billion natural gas power plant in West Texas, being developed by Chevron and Engine No. 1.The plant is expected to initially supply up to 2.5GW of power for use by a data center. Chevron and San Francisco hedge fund Engine No. 1 announced in January 2025 that they would build natural gas power stations for co-located AI data centers, deploying GE Vernova 7HA turbines.
In November, reports identified a West Texas site for the first facility, expected to be operational by 2027. Meanwhile, Microsoft continues its rapid AI-focused data center expansion. Last week, the company confirmed it would take the remaining space at Crusoe’s Abilene, Texas campus, securing 900MW of capacity.
