Microsoft, Chevron, and Engine No.1 sign exclusive power supply agreement

Microsoft, Chevron, and investment fund Engine No.1 announced on Tuesday that they have reached an exclusive agreement regarding power generation and electricity supply. Technology companies, including Microsoft, are eager to secure power for their rapidly expanding data centers, which will power AI services like ChatGPT and Copilot. The three companies stated in a release: “No commercial terms have been finalized, and no definitive agreement has been reached.” Media reports about the agreement with Microsoft indicate that the long-term deal involves a planned natural gas power plant in western Texas, with an estimated cost of around $7 billion. The power plant is initially expected to generate 2,500 megawatts to supply a large data center campus.