Data center profile · Near Pecos, Reeves County, Texas (Permian Basin)

Microsoft Project Kilby (Pecos)

Microsoft campus near Pecos, Texas, to run entirely on a 2.67 GW Chevron gas plant under a 20-year deal (June 2026); Chevron's investment decision pending.

Power deal signed, pre-decision. Chevron's subsidiary signed a 20-year power deal with Microsoft in June 2026, and the plant's air permits reached a preliminary decision. Chevron has not made its final investment decision (an executive said it could slip to 2027), and no construction is on record.
2.67 GW
on-site gas generation planned for the campus
Chevron figure; phased; behind the meter, not campus load
~2 GW
data-center capacity Microsoft says it will add
over five to seven years; company claim (press), not IT capacity
20 years
power purchase agreement with Microsoft
signed June 22, 2026
2028
first power target
company target; investment decision still pending
OperatorMicrosoft (data center); Energy Forge One, a Chevron subsidiary (power plant)
CustomerMicrosoft (20-year power buyer and data-center operator)
Planned IT capacity1.6 GW at full build-out (our estimate from the company's 2 GW campus power figure)
First building in serviceOur estimate: 2029 (range 2027 to 2032); company says 2028.
Next deadlineDec. 2026: Chevron's final investment decision, expected by the end of 2026 (an executive says it could slip to 2027)
Power

Power and the grid

2,670 MW contracted

Kilby Power Plant: on-site gas (GE Vernova and Solar Turbines)Contracted; air permits pending
2,670 MW
Chevron's planned capacity, built in phases; the air permit application listed about 2,595 MW (press) Company · June 2026
Contracted
Not used, not on record, or dropped

Getting on the grid

Who supplies what, what it costs, and what is still not public.

  1. Oct. 2025
    Air permit application filed
    Energy Forge One applies to the state air regulator for the Kilby Power Plant, listed at about 2,595 MW (press). News report · Oct. 2025
  2. April 2026
    Exclusivity agreement with Microsoft
    Chevron and Engine No. 1 sign an exclusivity agreement setting terms for a future power deal (press). News report · April 2026
  3. June 10, 2026
    Preliminary decision on air permits
    The state air regulator issues its notice of application and preliminary decision and schedules a public meeting. see Permits
  4. June 22, 2026
    20-year power purchase agreement
    Energy Forge One signs to supply dedicated power to the Microsoft data center. News report · June 2026
  5. Not set
    Final investment decision: pending
    Chevron targets the end of 2026; an executive told Semafor it could slip to 2027 (press). News report · Oct. 2026

On-site generation on file

+2 more
  • Generating units on the permit: 29 units Dataset · Oct. 2026
  • Generator maker and model: GE Vernova 7HA.02 (CC1-CC2, GT1-3); Solar Turbines T350 (GT4-15); Solar Turbines T130 (GT16-44) Dataset · Oct. 2026
Permits

Permits checklist

1 pending · 1 checked, nothing on file

Approvals the power plant and campus need, and what we found.

Risks

What could slow it down

Money

Money on record

50%
equity option held by Engine No. 1's Joulent
in the power project News report · June 2026
$10B+
state and local tax revenue Chevron expects
company claim; almost 2,000 jobs Company · June 2026
Timeline

What happened, and what is due

SitePaper trailConstructionPowerPermitsMoneyLegalUpcoming
  1. Jan. 28, 2025
    Power Chevron, Engine No. 1 and GE Vernova announce a gas 'power foundries' program built on seven reserved 7HA turbines; Kilby later grows out of it Company · Jan. 2025
  2. March 4, 2025
    Paper trail Energy Forge One LLC registered in Delaware and Texas
  3. Oct. 2025
    Permits Air permit application filed for the Kilby Power Plant at about 2,595 MW (press) News report · Oct. 2025
  4. April 2026
    Power Partners sign an exclusivity agreement with Microsoft (press) News report · April 2026
  5. June 10, 2026
    Permits State air regulator issues a preliminary decision on the plant's permits State agency · June 2026
  6. June 22, 2026
    Power 20-year power purchase agreement with Microsoft announced; the project is named Kilby News report · June 2026
  7. June 23, 2026
    Site Microsoft says the campus will add roughly 2 GW of data-center capacity over five to seven years (press) News report · June 2026
  8. Sept. 21, 2026
    Permits Governor directs the state air regulator to suspend data-center permits News report · Sept. 2026
  9. Oct. 13, 2026
    Money A Chevron executive says the investment decision could slip to 2027 (press) News report · Oct. 2026
  10. Dec. 2026
    Money Target for Chevron's final investment decision Company · June 2026
  11. 2028
    Power Target for first power to the campus Company · June 2026
The buildings

Specs

2,000+ acres
site near the city of Pecos (press)
News report · June 2026
7 GE Vernova 7HA turbines
secured under the partners' original program (press); Solar Turbines units add capacity
News report · June 2026
6,000+ jobs
construction jobs at full build-out, Microsoft says (press)
News report · June 2026
Who is involved

Owners, partners and builders

Power plant
  • Energy Forge One LLC: Chevron subsidiary developing the plant and selling the power
  • Chevron Corporation: parent company
  • Engine No. 1 and its energy venture Joulent: development partner with an option on a 50% stake
Data center
  • Microsoft: builds and operates the campus and buys the power
Equipment
  • GE Vernova: large turbines for most of the generation
  • Solar Turbines (Caterpillar): additional generation
Regulator
  • Texas Commission on Environmental Quality: air permits
Still unknown

Open questions

Where this comes from

53 records from 15 documents

Drawn from news reports, state agency records, company statements, business registries and public and commercial datasets, each kept with its date and source. The bar shows documents by type.

News report 9State agency 3Company 2Dataset 1
Evidence

Every quote behind this page

Grade key: A = the primary record itself (permit, filing, exhibit) · B = a dated official statement · C = news reporting. Map distances are our own measurements on OpenStreetMap and carry no grade. Allegations in lawsuits are marked as such in the quotes.

Power (15)
  • Generating units on the permit: 2 units
    “CC1 | Pre-construction | fossil gas: natural gas | 555.7145 | combined cycle | 2028 (planned) | GE Vernova: 7HA.02 | no”
    Dataset · Oct. 2026 · grade B
  • Generating units on the permit: 3 units
    “GT1-3 | Pre-construction | fossil gas: natural gas | gas turbine | 2029 (planned) | GE Vernova: 7HA.02 | no”
    Dataset · Oct. 2026 · grade B
  • Generating units on the permit: 12 units
    “GT4-15 | Pre-construction | fossil gas: natural gas | 373.25 | gas turbine | 2028 (planned) | Solar Turbines: T350 | no”
    Dataset · Oct. 2026 · grade B
  • Generating units on the permit: 29 units
    “GT16-44 | Pre-construction | fossil gas: natural gas | 392.955 | gas turbine | 2028 (planned) | Solar Turbines: T130 | no”
    Dataset · Oct. 2026 · grade B
  • Generator maker and model: GE Vernova 7HA.02 (CC1-CC2, GT1-3); Solar Turbines T350 (GT4-15); Solar Turbines T130 (GT16-44)
    “GT4-15 | Pre-construction | fossil gas: natural gas | 373.25 | gas turbine | 2028 (planned) | Solar Turbines: T350 | no”
    Dataset · Oct. 2026 · grade B
  • On-site generation: 2,670 MW
    “Kilby is expected to deliver approximately 2.67 gigawatts of capacity, built through a phased, modular approach that enables incremental expansion over time.”
    Company · June 2026 · grade B
  • First power delivery anticipated in 2028, after a final investment decision expected by the end of 2026
    “First power delivery is anticipated in 2028.”
    Company · June 2026 · grade B
  • Kilby is designed to deliver dispatchable electricity directly to Microsoft while mitigating impacts on the regional grid (behind-the-meter, not an ERCOT-interconnected load)
    “By co-locating new, large-scale power generation with the data center, Kilby is designed to deliver reliable, dispatchable electricity directly to Microsoft”
    Company · June 2026 · grade B
  • Plant operations plan to use non-potable brackish groundwater instead of freshwater, with work on reusing produced water from oil and gas operations
    “In lieu of freshwater, Kilby plans to use non-potable, brackish groundwater sources for power plant operations.”
    Company · June 2026 · grade B
  • County: Reeves County, TX (48389)
    “The proposed Power Plant (Kilby site) is located near Pecos, Reeves County, Texas”
    State agency · June 2026 · grade B
  • Chevron targets FID by end of 2026 and first power in 2028; a Chevron executive told Semafor the FID could slip to 2027 amid the Texas permit calendar.
    “A Chevron executive told Semafor the FID could slip to 2027”
    News report · Oct. 2026 · grade C
  • Generation equipment: GE Vernova 7HA turbines for most capacity, supplemented by Solar Turbines (Caterpillar) units; seven 7HA units reported in project coverage. Equipment counts are not converted to MW in this lane.
    “Project Kilby: Chevron's 20-year power agreement with Microsoft for about 2.67 GW of behind-the-meter gas generation in West Texas, with GE Vernova and Solar Turbines equipment”
    News report · Oct. 2026 · grade C
  • Project identity: Project Kilby - Microsoft data center campus co-located with a Chevron (Energy Forge One LLC) behind-the-meter natural gas power plant near Pecos, Reeves County, TX; more than 2,000 acres; 20-year power
    “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.”
    News report · June 2026 · grade C
  • Stated campus size: 2,000 MW
    “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.”
    News report · June 2026 · grade C
  • The plant is engineered to run 100% behind the meter with no ERCOT interconnection, bypassing the grid queue
    “The plant runs independently of the Texas grid. It does not join the ERCOT interconnection queue”
    News report · 2026 · grade C
Money and contracts (5)
  • Source record
    “This agreement represents an important milestone toward Chevron's Final Investment Decision (FID), which is expected by the end of 2026, subject to the completion of other necessary conditions.”
    Company · June 2026 · grade B
  • Chevron expects Kilby to generate more than $10 billion in state and local tax revenue and support almost 2,000 jobs
    “Kilby is expected to generate significant economic benefits for the region, including more than $10 billion in state and local tax revenue, support almost 2,000 jobs”
    Company · June 2026 · grade B
  • Microsoft expects more than 6,000 construction jobs at full buildout; a reported project value of around $7 billion circulates in coverage but is an estimate, not a Chevron-confirmed figure
    “The development is expected to create more than 6,000 construction jobs and hundreds of permanent operational positions.”
    News report · June 2026 · grade C
  • power purchase agreement: term and capacity 2,670 MW
    “On 22 June 2026 Chevron announced that its subsidiary Energy Forge One LLC had signed a 20 year power purchase agreement with Microsoft for a co located power facility in West Texas”
    News report · June 2026 · grade C
  • exclusivity agreement: exclusivity
    “in April, the partners signed an 'exclusivity agreement' with Microsoft, setting the parameters for a future energy supply deal.”
    News report · April 2026 · grade C
Permits and government (3)
  • TCEQ issued a Notice of Application and Preliminary Decision for proposed State : notice of application and preliminary decision (NAPD); public meeting notice
    “has applied to the Texas Commission on Environmental Quality (TCEQ) for issuance of proposed State Air Quality Permit 181895, issuance of Prevention of Significant Deterioration (PSD) Air Quality Permit PSDTX1684”
    State agency · June 2026 · grade B
  • The Governor's Sep 21, 2026 directive suspends TCEQ issuance of data center project permits pending the ERCOT audit; Kilby's permits are at preliminary-decision stage, so final issuance is gated by the pause. Whether a b
    “on September 21, 2026, Governor Abbott issued a letter instructing the TCEQ to suspend the issuance of all permits sought by data centers (or related to data center projects)”
    News report · Sept. 2026 · grade C
  • Energy Forge One LLC filed a TCEQ air permit application for the Kilby Power Pla: air permit application filed
    “Chevron's subsidiary Energy Forge One had filed an air-permit application with Texas regulators (the TCEQ) for the plant — listed there at about 2,595 MW”
    News report · Oct. 2025 · grade C
Site and other (1)
  • County code: 48389
    “The project, named Project Kilby, sits on more than 2,000 acres in Reeves County near the city of Pecos, deep in the Permian Basin.”
    News report · Oct. 2026 · grade C