Driven by accelerated demand for AI, Chevron and Engine No. 1 are collaborating to deliver dedicated, natural gas-fired electricity for a next generation data center
In June 2026, Chevron's wholly owned subsidiary Energy Forge One entered into a 20-year power purchase agreement with Microsoft Corp. to develop a co-located power facility in Reeves County, Texas. The facility will provide dedicated electricity to a Microsoft-operated data center.
By generating power behind the meter and co-locating it with a data center, Kilby is designed to deliver dedicated electricity while helping avoid additional strain on the regional grid.
Kilby is projected to contribute about $99 billion into the state’s economy, supporting families, workers, and businesses across the region.
~$ 6.3 B
projected raise in earnings for Texans
~ 1,900
expected permanent jobs supported in surrounding area over its useful life
~ 2,000
expected temporary construction jobs
$ 133,577
Kilby to pay average annual wage for full-time power plant employees
The project exemplifies the power of collaboration and innovation, supporting national objectives for both energy independence and technological leadership. Kilby is Energy Forge One’s large-scale power project developed specifically to support a hyperscale data center and is expected to be one of the largest natural gas-powered, co-located power projects in the U.S.
From new jobs and long‑term investment to increased tax revenue that supports schools and emergency services, Kilby is projected to bring meaningful benefits to the local community and broader economy, helping support families, workers, and businesses across the area. Overall, the project is projected to contribute about $99 billion into the Texas economy and raise earnings for Texans by about $6.3 billion.
The project plans to use non-potable, brackish groundwater sources for power plant operations, helping to reduce demand on shared freshwater resources. To further reduce groundwater withdrawals in the future, Chevron is working to advance solutions to enable use of treated produced water for Kilby and other industrial applications in the Permian Basin over the coming years.
Kilby is being designed to meet applicable federal and state environmental requirements through permitted design and operational controls. The power plant is expected to incorporate advanced emission control technologies to comply with applicable best available control technology requirements.
“A company like Chevron seeking to invest in Reeves County signals strong confidence in the future of our county and in the Texas economy. Projects of this scale will help ensure that our region remains competitive, resilient, and prepared for continued growth.”
Leo Hung
Reeves County Judge