Microsoft, Chevron, and Engine No. 1 sign exclusivity agreement for natural gas power supply to AI data centers
Type: Ppa · Technology: Gas · Country: United States · Capacity: 2.5 GW · Announced: 2026-04-02
Microsoft, Chevron, and Engine No. 1 have entered into an exclusivity agreement for the supply of up to 2.5GW of natural gas power to Microsoft's new data centers. This deal is tied to a proposed $7 billion natural gas-fired power plant that Chevron and Engine No. 1 plan to construct in West Texas. The power plant, expected to be operational by 2027, will utilize GE Vernova's 7HA natural gas turbines. This agreement supports Microsoft's rapid data center expansion to meet the demands of its AI systems.
Analysis
Microsoft, Chevron, and Engine No. 1 have entered an exclusivity agreement for up to 2.5 GW of natural gas power supply to Microsoft's new data centers in the USA. This agreement is tied to a proposed $7 billion natural gas-fired power plant in West Texas, expected to be operational by 2027. The plant will utilize GE Vernova's 7HA natural gas turbines, supporting Microsoft's data center expansion for AI systems.
Key points
- Exclusivity agreement for 2.5 GW natural gas power supply
- Microsoft, Chevron, and Engine No. 1 are counterparties
- Deal tied to proposed $7 billion natural gas-fired power plant
- Plant expected operational by 2027 in West Texas
- GE Vernova's 7HA natural gas turbines to be utilized
Counterparties
- Engine No. 1 (Developer)
- Chevron Corporation (Developer)
- Microsoft (Offtaker)