Microsoft and Chevron have signed a 20-year agreement to support the tech company's West Texas data centers through Chevron's planned Kilby natural gas project, a behind-the-meter facility next to Microsoft's Pecos campus that is expected to scale to 2.67 GW. Microsoft expects the campus to add 2 GW of data center capacity over the next five to seven years, reflecting the heavy power needs tied to AI workloads. Chevron is developing the project with Engine No. 1 and GE Vernova, while Caterpillar's Solar Turbines unit will provide additional generation capacity. The companies are targeting initial power generation in 2028 and a final investment decision before the end of 2026. Microsoft has described the Pecos investment as a multi-billion-dollar commitment expected to create more than 6,000 construction jobs and hundreds of permanent operational roles. The structure keeps generation on-site rather than routed through the regional grid, helping avoid interconnection bottlenecks that have slowed other data center and power projects.