Microsoft and Chevron signed a 20-year agreement for natural gas power.
Chevron will supply electricity to a new Microsoft data center campus in West Texas.
The deal addresses surging electricity demand triggered by artificial intelligence expansion.
Project Kilby will sit near Pecos, Texas, utilizing Permian Basin natural gas.
The facility will power the data center directly without using the public grid.
Chevron and investment fund Engine No. 1 are collaborating on the project.
The partnership co-locates energy generation with AI infrastructure consumption.