How much is Microsoft investing in the Texas data center?

Microsoft is investing approximately $7 billion.

When will the data center begin operations?

Operations are expected to start in 2028.

Where is the data center located?

It is located in Reeves County, Texas.

Chevron Wins 20-Year Deal to Power Microsoft's $7B Texas Data Center

Chevron has secured a 20-year contract to supply natural gas power for Microsoft's $7 billion data center project in Reeves County, Texas. Operations are expected to begin in 2028.

June 23, 2026

1 min read

Source: Barchart

Key Numbers

contract duration

20 years

data center investment

$7 billion

start year

2028

Chevron Corporation (NYSE: CVX) announced a 20-year agreement to supply natural-gas-fired power for Microsoft's planned $7 billion data center in Reeves County, Texas. The facility is expected to begin operations in 2028.

Deal Details

Duration: 20 years.
Fuel: Natural gas.
Location: Reeves County, Texas.
Data Center Investment: $7 billion.
Start Date: 2028.

Context

The deal reflects the growing demand for reliable power from tech giants as they expand cloud computing and AI infrastructure. Natural gas is a lower-carbon fossil fuel but still raises environmental concerns.

What This Means for Investors

The contract provides Chevron with long-term revenue visibility, supporting its cash flow stability. However, it may face scrutiny from environmental advocates. Investors should monitor regulatory trends and competition from renewable energy sources.

Frequently Asked Questions

The contract is for 20 years.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.