Microsoft and Chevron plan one of the largest gas-powered data center projects in US

Microsoft and Chevron finalized a 20-year power purchase agreement on May 20, 2024, to supply electricity for a new natural gas-powered data center. This deal is poised to be one of the largest gas-powered data center projects in the United States. The agreement will secure power for Microsoft's expanding cloud computing operations, specifically its Azure services, which are experiencing significant growth. Chevron, through its Chevron New Energies division, will develop and operate the natural gas power plant, which is expected to have a capacity of approximately 115 megawatts. This project highlights a trend of major technology companies continuing to invest in natural gas infrastructure to meet the immense energy demands of artificial intelligence and data processing, despite broader climate goals. The partnership underscores the complex energy choices facing the tech industry as it scales rapidly. The data center is slated for construction in the Denver, Colorado, area, with operations expected to commence in 2026. This move by Microsoft comes as the company faces increasing pressure to decarbonize its operations, yet simultaneously requires vast amounts of reliable energy to power its AI initiatives.