How did the stocks of involved companies react?

GE Vernova and Caterpillar shares rose, while Chevron and Microsoft saw no immediate impact.

Why does Microsoft need this project?

Microsoft requires reliable power for its AI data centers, which consume large amounts of electricity.

Chevron to Power Microsoft Data Center with Natural Gas for AI

Chevron announced Monday it will power a major Microsoft data center in West Texas with natural gas, using gas turbines supplied by GE Vernova and Caterpillar. The project, known as Project Kilby, is expected to produce 2.7 gigawatts of electricity. Shares of GE Vernova and Caterpillar rose on the news.

June 22, 2026

2 min read

Source: Investor's Business Daily

Key Numbers

power capacity

2.7 GW

Chevron Corporation (NYSE: CVX) announced Monday that it will supply natural gas to power a massive Microsoft (NASDAQ: MSFT) data center in West Texas, as part of a project called Project Kilby.

Project Details

The facility will have a capacity of 2.7 gigawatts, using gas turbines from GE Vernova and Caterpillar (NYSE: CAT). The project supports Microsoft's expansion of its AI infrastructure.

Market Reaction

GE Vernova stock rose near a buy point, while Caterpillar stock jumped significantly. No immediate impact was reported on Chevron or Microsoft shares.

Context

The move comes as major tech companies race to secure reliable power sources for energy-intensive data centers, driven by surging demand for AI applications.

What It Means for Investors

The project highlights opportunities for energy and industrial equipment companies to benefit from growing tech sector power demand. However, investors should monitor regulatory and environmental developments regarding natural gas use.

Frequently Asked Questions

Project Kilby is an initiative to power a Microsoft data center in West Texas with natural gas, generating 2.7 GW using turbines from GE Vernova and Caterpillar.

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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.