Inside Project Kilby: Chevron's 2.67 GW, 20-year power deal for Microsoft's Pecos campus

Chevron announced on June 22, 2026 that its wholly owned subsidiary Energy Forge One LLC signed a 20-year power purchase agreement with Microsoft for a co-located power facility in West Texas called Project Kilby. Microsoft said the same day it will build a new datacenter campus in Pecos, Texas. Chevron expects a final investment decision by the end of 2026 and anticipates first power in 2028. Texas air-permit records place the Kilby Power Plant near Pecos in Reeves County.

• Virginia budget sets $0.011/kWh data-center electricity tax – HB30 conference-report Item 3-5.24 #1c levies a tax on all electricity consumed at each data center from July 1, 2026 until before July 1, 2028, collected monthly by the State Corporation Commission.
• LPSC fast-tracks Entergy’s U-37882 without approving it – the Commission set a December 16, 2026 target decision and directed the Administrative Hearings Division to build the record; staff confirmed the April 15 vote did not find the Lightning Initiative criteria satisfied.
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