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Microsoft Negotiates $7 Billion Gas Plant with Chevron

4/1/2026

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Story summary
  • Microsoft Corp. is in exclusive negotiations with Chevron Corp. and Engine No. 1, an activist investment firm, to support a $7 billion natural-gas power plant in West Texas.
  • The facility would generate 2,500 megawatts of electricity for a data center campus near Pecos in the Permian Basin.
  • Operations could begin by 2027, pending tax and environmental approvals.
  • If successful, the plant may expand to 5,000 megawatts.