Chevron is Building a Massive Power Plant to Support a Microsoft AI Data Center. Here's What it Means for the Energy Stock.

Chevron has signed a 20-year power agreement with Microsoft to build a 2.67 GW natural gas-fired power plant in Texas called Project Kilby to support Microsoft's AI data center. The $7 billion project represents a new growth platform for Chevron, leveraging its Permian Basin gas resources to generate predictable cash flows and reduce commodity price volatility, with power delivery expected to begin in 2028.