Chevron enters power generation with a Microsoft AI deal, building gas plants for data centers

Chevron moves into power production with Microsoft AI deal

Chevron signed its first major power deal with Microsoft, planning over 1 GW of gas-fired plants by 2028 to directly supply Microsoft data centers. This marks an oil major's first large-scale move into power generation rather than just selling gas. The plants will include carbon capture, though the article doesn't specify capture rates or costs. Chevron also aims to build next to data centers, bypassing the 5-year average US grid interconnection queue. The signal for AI builders: cloud providers are now pulling oil companies into the power business.

Why it matters: Chevron building gas plants directly for Microsoft data centers — 1 GW, 2028, bypassing grid queues. The electricity crunch pulling oil majors into generation is a strong signal for AI infra. Score capped because carbon capture rates and costs aren't disclosed, so the green cl...