Microsoft has revealed plans for a 2GW data center campus in Pecos, Texas.

The company has also inked an energy supply deal with US oil and gas major Chevron, under which the fossil fuel giant will supply up to 2.67GW of power behind the meter for the project.

The company has described the project as a “multibillion-dollar data center campus,” with investment planned to span the next five to seven years. Around 6,000 construction jobs are expected at full buildout. Details about the data center campus have not yet been provided.

Chevron will provide power capacity to the site under a 20-year Power Purchase Agreement (PPA), with capacity increasing incrementally over time due to the phased construction of the power plant. The project is being developed by Chevron and US hedge fund Engine No. 1 and will be known as Project Kirby. The plant is expected to achieve first power delivery in 2028.

The companies first partnered back in January 2025 to develop up to 4GW of gas power capacity to power data centers across the country. Following this, in November, it was revealed that Chevron had selected West Texas as the site of its first natural gas-fired power plant to serve the data center sector. In April, the partners signed an “exclusivity agreement” with Microsoft, setting the parameters for a future energy supply deal.

Project Kirby will be composed predominantly of large GE Vernova-manufactured turbines and associated electrical infrastructure. Additional capacity will be provided by Caterpillar subsidiary Solar Turbines. Chevron and Engine No. 1 secured seven GE Vernova 7HA natural gas turbines as part of their original partnership. The exact model was not disclosed, but GE Vernova offers three models, with capacities of 290MW, 384MW, and 430MW.

“AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transformation,” said Jeff Gustavson, Chevron president of New Energies. “Chevron is uniquely positioned to deliver power to customers with certainty, speed, and at a competitive cost, leveraging Permian natural gas and our proven execution capabilities."

Noelle Walsh, Microsoft president of cloud operations + innovation, added: “The rapid growth we’re experiencing in AI and cloud, driven by customer demand, requires energy infrastructure that can scale quickly and reliably. Our agreement with Chevron helps ensure we’ll have dedicated, large-scale power to support the evolution and reliability of advanced compute."

Chevron claims that the project will create significant economic benefits for the local area, including more than $10 billion in state and local tax revenue. The company plans to use non-potable, brackish groundwater sources for power plant operations. It has also said it is working to advance solutions for reusing produced water from oil and gas operations.

Pecos is located in West Texas near the New Mexico border. It is not a typical data center market in Texas, but in August 2025, Pacific Energy announced plans for a 5GW off-grid power project in nearby Pecos County, purpose-built to serve hyperscale data centers.

Microsoft has a significant data center footprint across Texas, both with operational facilities and those under development. Recent projects include in Medina and Castroville. In March 2026, the company also signed on to lease some 700MW of capacity from Crusoe’s data center campus in Abilene, Texas.