Chevron and Microsoft have signed a 20-year agreement to supply dedicated power for a planned data center campus near Pecos, Texas, advancing one of the largest pairings of compute infrastructure and on-site generation in the US, the companies said on Monday. The development, called Project Kilby, will combine a Microsoft-operated data center with a co-located natural gas power plant developed by Chevron subsidiary Energy Forge One and investment firm Engine No. 1. The project targets approximately 2.67 GW of generation capacity built in phases, with first power planned for 2028. Chevron said it expects to reach a final investment decision by the end of 2026. Microsoft said the campus will add roughly 2 GW of data center capacity over the next five to seven years to support AI and cloud workloads, and is expected to create more than 6,000 construction jobs and hundreds of permanent operational positions. Most of the generation capacity will come from gas turbines supplied by GE Vernova, with additional capacity provided by Solar Turbines, a Caterpillar subsidiary.