Microsoft is in exclusive negotiations with Chevron and investment fund Engine No. 1 for a long-term energy deal.
The partnership supports a proposed $7 billion power plant in Texas.
The facility is expected to initially generate 2.5 gigawatts of electricity.
Microsoft aims to secure the power to meet the energy demands of its expanding artificial intelligence infrastructure.
Chevron and Engine No. 1 previously collaborated to develop power solutions specifically for the data center sector.