Project Kilby
Pecos, Reeves County, TXDeveloper: Microsoft, Chevron, Joulent LLC
Also known as Kilby Power Plant, Microsoft Pecos campus
- Rumored
- Proposed
- Approved
- Under construction
- Operating
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Project Kilby is a proposed natural gas power plant of about 2.67 GW near Pecos, in Reeves County, West Texas, meant to supply a Microsoft-operated data center campus directly. Chevron, through its subsidiary Energy Forge One LLC, and Microsoft announced a 20-year power purchase agreement on June 22, 2026. The plant would be built in phases and, according to E&E News, would not at first be connected to the grid, with first power targeted for 2028 (per Shale Magazine and w.media). Energy Forge One LLC has applied to the Texas Commission on Environmental Quality for air permits, and Shale Magazine says Chevron's announcement targeted a final investment decision by the end of 2026, subject to remaining conditions. Bloomberg reported on July 1, 2026 that National Grid is investing $1.75 billion for a 35% stake in Joulent LLC, which Bloomberg says is developing a gas-fired power plant with Chevron for Microsoft in Texas. Morgan Lewis and w.media name that plant as Project Kilby and describe the Chevron–Joulent arrangement as a 50/50 venture. Reported capacity differs by source: 2.67 GW per Chevron's announcement, 2.869 GW per the Environmental Integrity Project (via Shale Magazine), and 2.5 GW initially (up to 5 GW) in Bloomberg Línea's March 2026 report.
Key facts
Size & schedule
| Planned capacity | 2.67 GW [8] generating capacity of the planned power plant, built in phases; not a measure of the campus's electricity use or server capacity. The Environmental Integrity Project lists 2,869 MW for the plant, per Shale Magazine; Bloomberg Línea reported 2,500 MW initially, expandable to 5,000 MW, in March 2026, before the agreement Source excerpt“approximately 2.67 gigawatts of planned generating capacity, developed in phases” |
|---|---|
| Stated investment | $7 billion [6] Bloomberg Línea's March 2026 estimate for the power plant, reported before a definitive agreement; neither company has published a cost Source excerpt“cueste unos US$7.000 millones y genere inicialmente 2.500 megavatios de electricidad” |
| Construction jobs | over 6,000 [5] Microsoft's expectation for the campus build-out, as relayed in a law firm's note on the deal |
| Target completion | First power targeted for 2028, per Shale Magazine and w.media [8] |
Power
| Power supply | Co-located natural gas plant operating behind the meter, with the companies saying a grid connection could come later [2] |
|---|---|
| On-site generation | 2.67 GW [8] behind-the-meter gas generation, with most of the equipment from GE Vernova and additional units from Caterpillar's Solar Turbines, per Shale Magazine Source excerpt“GE Vernova equipment would provide most of the generation” |
| Air permit | TCEQ Air Quality Permit No. 181895, PSD permit PSDTX1684 and GHG PSD permit GHGPSDTX260 (Energy Forge One LLC; applications under review as of the June 10, 2026 public meeting notice) [1]Source excerpt“has applied to the Texas Commission on Environmental Quality (TCEQ) for an Air Quality Permit No. 181895” |
Figures are as stated by the cited source. Where sources disagree, each figure is shown.
Water and power
Water
Not disclosed. No source reviewed gives a water figure for this site. The Census does not estimate one.
Disclosed figures only, each as the cited source states it. Many are projections or permit limits, not metered use. How data center water and power use is measured, and every disclosed figure →
Timeline
Bloomberg Línea reports Microsoft is in exclusive talks with Chevron and Engine No. 1 over a power plant near Pecos priced at about $7 billion [6]
Chevron, Microsoft and Engine No. 1 confirm exclusive talks on gas-fired power for a West Texas campus, saying no definitive agreement exists yet [7]
TCEQ posts a public meeting notice for Energy Forge One LLC's air permit applications for the Kilby Power Plant [1]
Chevron and Microsoft announce a 20-year agreement under which Chevron plans to build about 2.67 GW of gas-fired generation at the Project Kilby site in Reeves County [3]
Bloomberg reports that National Grid will invest $1.75 billion for a 35% stake in Joulent LLC, and that Joulent is developing a gas-fired power plant with Chevron for Microsoft in Texas. Morgan Lewis (National Grid's law firm) and w.media identify the plant as Project Kilby [10]
Chevron's second-quarter earnings release lists the signed agreement for about 2.67 GW of behind-the-meter power in West Texas [9]
Issues raised
- Coverage notes the deal complicates Microsoft's stance on fossil fuels and focuses on 20 years of turbine emissions [2]
Issues are concerns and claims raised by the parties, officials or residents named in the cited sources. They are reported as attributed, not as findings by the Census.
Sources
- 2026-06-10 - Energy Forge One LLC - 181895, PSDTX1684, and GHGPSDTX260 - Public MeetingTexas Commission on Environmental Quality · Jun 10, 2026 · government
- Microsoft turns to Chevron's gas to power a Texas data centre (The Register)The Register · Jun 22, 2026 · news
- Chevron inks deal to power Microsoft data center in TexasE&E News by POLITICO · Jun 22, 2026 · news
- Chevron strikes deal with Microsoft to power AI for 20 yearsJournal of Petroleum Technology · Jun 27, 2026 · news
- Microsoft Expands Global Data Center Capacity with 2 GW Data Center and Co-Located Power Facility in West TexasOrrick · Jul 2, 2026 · other
- Microsoft negocia con Chevron y Engine No. 1 sobre planta eléctrica de US$7.000 millonesBloomberg Línea · Mar 31, 2026 · news
- Microsoft, Chevron exclusivity powering West Texas data center complexFortune · Apr 1, 2026 · news
- Chevron–Microsoft Power Deal: Project Kilby ExplainedShale Magazine · Jun 29, 2026 · news
- Chevron reports second quarter 2026 results (Form 8-K, Exhibit 99.1)Chevron / SEC · Jul 31, 2026 · company
- UK's National Grid Invests $1.8 Billion in US AI Power FirmBloomberg (Eamon Farhat and Naureen S. Malik) · Jul 1, 2026 · news
- National Grid Ventures to invest US$ 1.75 Billion for 35 percent stake in Joulentw.media · Jul 2, 2026 · news
- Morgan Lewis Advises National Grid on $1.75B Investment to Support AI and Data Center GrowthMorgan Lewis · Jul 1, 2026 · other
Cite this page
Last updated Oct 15, 2026. Figures may change as records are updated — include the date you retrieved them.
| APA | Data Center Census. (2026). Project Kilby. Retrieved from https://datacentercensus.com/dc/project-kilby-reeves-county-tx |
|---|---|
| MLA | “Project Kilby.” Data Center Census, Oct 15, 2026, https://datacentercensus.com/dc/project-kilby-reeves-county-tx. |
| Link | https://datacentercensus.com/dc/project-kilby-reeves-county-tx |
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