Chevron Keeps Microsoft Data Center Plan Despite Texas Pause

Chevron Corp. expects to power up a Microsoft Corp. data center project in West Texas on schedule despite Governor Greg Abbott’s suspension of digital infrastructure permits.

The energy company is working on permitting, engineering work and financing, Chevron Chief Financial Officer Eimear Bonner said during an interview. “And we don’t see any of those things impacting the overall schedule of first power in 2028” and ramp up by 2031, she added.

Chevron and Joulent LLC agreed to a deal with Microsoft to supply natural gas to power a large-scale data center in the Permian Basin earlier this year. But the development, known as Project Kilby, has been held up by Abbott’s decision to pause data center developments due to local opposition. Critics have said the pause is only temporary as Abbott is campaigning for a fourth term in Tuesday’s elections.

Project Kilby would supply its own power, meaning it wouldn’t raise prices for consumers, Bonner said. It also will rely on non-potable water for cooling, eliminating any impact on drinking water supplies.

“That is why on August 6th, Governor Abbott announced that the Kilby project complies with his standards,” Bonner said.