A standard power company buys fuel from someone else, generates electricity, and sells it. Chevron's position is different: the company already owns the gas in the ground. Project Kilby lets it earn at multiple points in that chain:<\/p>\n <\/div>\n\n

Gas supply.<\/strong> Chevron can feed part of its own Permian Basin gas into the plant. That gas, which might otherwise be sold at a loss or flared, now has a guaranteed buyer: the plant itself.<\/li>\n

Power generation margin.<\/strong> Electricity is worth more than the gas used to produce it. Chevron captures that difference by converting fuel into power on its own site.<\/li>\n

Long-term capacity contract.<\/strong> Microsoft pays for the right to receive a guaranteed volume of electricity over 20 years. Even if actual consumption varies day to day, Chevron receives payment for keeping the capacity available.<\/li>\n

Potential grid sales.<\/strong> The plant will initially serve Microsoft exclusively. If technical and commercial conditions allow, surplus capacity could be sold to other buyers through the regional grid over time.<\/li>\n <\/ul>\n\n \n
The same cubic metre of gas that Chevron once had to sell at whatever the market offered now generates revenue at each of these steps.<\/p>\n <\/div>\n\n \n
<\/span>A Business That Does Not Rise and Fall with Oil Prices<\/span><\/h2>\n\n
\n
Chevron's earnings have always tracked oil and gas prices closely. When prices are high, cash flows are strong. When they fall, profits shrink fast. This is the nature of commodity businesses, and investors who own CVX shares understand it comes with the territory.<\/p>\n
Project Kilby introduces a different kind of income. A 20-year fixed-term contract with Microsoft means Chevron knows, years in advance, how much electricity it needs to deliver and roughly what it will be paid for it. If the agreement includes capacity payment structures or fuel cost pass-through clauses, the revenue from this project becomes largely insulated from swings in the oil market.<\/p>\n
Think of it as the difference between selling wheat at whatever price the market sets each harvest, and owning a bakery with a long-term supply contract. Both use the same raw material, but one produces far more predictable income. Chevron has stated publicly that Project Kilby is designed to generate cash flow that is less sensitive to the commodity cycle. A series of similar plants, once built, would gradually shift more of Chevron's revenue into this steadier category.<\/p>\n <\/div>\n\n \n
<\/span>How Much Could Project Kilby Actually Generate<\/span><\/h2>\n\n
\n
Chevron and Microsoft have not disclosed the electricity price in their agreement. To estimate the project's revenue potential, we use a range of 70 to 100 USD per MWh, built from publicly available benchmarks.<\/p>\n
Average wholesale electricity prices in the ERCOT market<\/a> (the Texas grid) are lower than this range, but they reflect trading on the existing grid, which is a different product. Project Kilby is a new plant built specifically to supply one customer around the clock, every day. According to Lazard's estimates<\/a>, the all-in cost of electricity from a new gas plant in the US runs at 65 to 67 USD per MWh, which sets the floor. On top of that base, a long-term contract, dedicated capacity, and the ability to bypass grid congestion all justify a price premium. That gives us 70 USD per MWh as the low scenario, 85 USD as the base case, and 100 USD as the high end.<\/p>\n
At 2.67 GW of capacity running at roughly 90% utilisation, the plant would produce around 21 TWh of electricity per year.<\/p>\n <\/div>\n\n\n\n
$\"Estimated$ <\/a>
Estimated annual revenue from Project Kilby at 2.67 GW capacity and 90% load factor under three power price scenarios. Final conditions of the agreement have not been disclosed. Past results do not guarantee future performance.<\/figcaption><\/figure>\n\n\n\n
\n
In the most favourable scenario, Project Kilby could generate over 2 billion USD in annual revenue for Chevron. Relative to the company's total scale, that is a meaningful but not dominant figure. The real importance of this number is what it signals<\/a>: if one plant can reach 2 billion USD, a portfolio of similar plants changes the financial picture significantly.<\/p>\n <\/div>\n\n \n
<\/span>Why This Deal Could Be the Start of Something Bigger<\/span><\/h2>\n\n
\n
Project Kilby did not come out of nowhere. Back in 2025, Chevron, Engine No. 1, and GE Vernova announced a programme<\/a> to build plants with combined capacity of up to 4 GW for US data centres. At 2.67 GW, Project Kilby is the biggest piece of that programme.<\/p>\n
If the Kilby plant delivers, on time, within budget<\/a>, and with reliable power, Chevron has a working proof of concept to take to other buyers. Amazon<\/a>, Alphabet<\/a>, Meta<\/a>, and Oracle are all spending tens of billions of USD on data centre infrastructure, and all of them face the same problem: securing enough power. Chevron can walk into those conversations with a completed project as evidence that the model works.<\/p>\n
Chevron's position in this market is genuinely hard to replicate quickly. The company already owns gas in the Permian, has the engineering expertise to run complex energy assets, has access to capital for large projects, and has existing relationships with the equipment manufacturers building these plants. A tech company wanting to copy this approach would need years and billions of USD to build the same starting point.<\/p>\n
If AI infrastructure spending continues to grow, powering data centres could become a standalone segment of Chevron's business, one that earns from the AI boom through electricity, without having to build AI models or take on the risks that come with them.<\/p>\n <\/div>\n\n \n
\n
\n
Open a Trading Account<\/a> at RoboForex<\/div>\n
Swap-free accounts, spreads from 0, and execution in 0.01 seconds.<\/div>\n <\/div>\n
\n Open Account<\/a>\n <\/div>\n <\/div>\n\n \n
<\/span>What This Means for CVX Shares Right Now<\/span><\/h2>\n\n
\n
The honest answer for the short term: not much. Construction spending starts before revenue does, and the plant will not be generating power until 2028. CVX shares will continue to be driven by the factors that have always mattered most: oil and gas prices, Permian Basin output, progress on Guyana projects, results from the Hess acquisition, dividend policy, and buyback<\/a> pace.<\/p>\n
What the deal changes is the longer-term story. Once Project Kilby starts delivering power and generating cash, it adds a revenue stream that behaves very differently from the rest of Chevron's business. At full capacity, the plant could add several hundred million USD of cash flow per year. The exact number depends on Chevron's final ownership stake and the contract terms, but the direction is clear.<\/p>\n
The more interesting question is what comes after Kilby. If Chevron closes two or three more contracts like this one over the next few years, the company starts to look meaningfully different: part oil major, part infrastructure operator with a contracted revenue base. That shift, if it happens, is what could gradually lift how the market values CVX.<\/p>\n <\/div>\n\n\n\n\n\n

Parameter<\/th>\n	Value<\/th>\n <\/tr>\n <\/thead>\n
Instrument<\/td>	Chevron Corp (NYSE<\/a>: CVX)<\/td><\/tr>\n
Ticker in MobileTrader \/ MT5<\/td>	CVX<\/td><\/tr>\n
Idea Date<\/td>	June 23, 2026<\/td><\/tr>\n
Time Horizon<\/td>	1–6 months<\/td><\/tr>\n
Direction<\/td>	↑ Buy (Long)<\/td><\/tr>\n
Entry Level (trigger)<\/td>	180.00 USD<\/td><\/tr>\n
Take Profit<\/a><\/td>	213.00 USD<\/td><\/tr>\n
Stop Loss<\/a><\/td>	169.00 USD<\/td><\/tr>\n
Position Size<\/td>	No more than 3% of account · Medium risk<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n \n \n Instant Access to Global Markets with RoboForex MobileTrader<\/div>\n Everything you need for successful trading in one app: stocks<\/a>, indices<\/a>, metals, oil, currencies.<\/div>\n <\/div>\n \n Telegram<\/a>\n Google Play<\/a>\n App Store<\/a>\n <\/div>\n <\/div>\n\n \n <\/span>Chevron Enters the Data Centre Business<\/span><\/h2>\n\n \n Chevron has spent most of its history doing one thing: extracting oil and gas, refining it, and selling fuel. That model is not going away, but on 22 June 2026 the company added something new to it.<\/p>\n Chevron's subsidiary Energy Forge One signed a 20-year power supply agreement<\/a> with Microsoft to supply electricity to a data centre in Pecos, Texas. Under Project Kilby, Chevron will build a gas-fired power plant with capacity rising in stages to 2.67 GW.<\/p>\n The deal works for both sides. Microsoft gets a dedicated power source for its cloud and AI infrastructure for two decades, with no dependency on an already strained regional grid. Chevron gets a single large customer and guaranteed revenue stretching to 2046. Power deliveries are planned to start in 2028. The final investment decision is expected before the end of 2026.<\/p>\n <\/div>\n\n \n <\/span>What Project Kilby Actually Involves<\/span><\/h2>\n\n \n The power plant will sit next to Microsoft's data centre near Pecos, Texas, feeding it electricity directly without touching the regional grid. The construction is planned in phases: first power in 2028, then a gradual expansion to the full 2.67 GW.<\/p>\n The 20-year contract length matters for Chevron's finances. A two-decade commitment gives the company a clearer picture of future cash flows and makes the project far easier to finance. Chevron plans to finalise the investment decision before the end of 2026, locking in the construction cost, financing structure, and technical specs.<\/p>\n GE<\/a> Vernova will supply the core equipment for the plant. Solar Turbines, a Caterpillar<\/a> subsidiary, will provide additional generating capacity. Investment firm Engine No. 1 is also a project partner<\/a>.<\/p>\n <\/div>\n\n \n <\/span>Why West Texas Makes the Economics Work<\/span><\/h2>\n\n \n The Permian Basin is the largest oil-producing region in the US. When you pump oil, you also bring up large quantities of natural gas alongside it. That gas needs somewhere to go, and the pipeline infrastructure in West Texas often cannot move it all out of the region fast enough.<\/p>\n The result: gas prices at the local Waha Hub regularly collapse to near-zero, and sometimes turn negative<\/a>. Producers effectively pay to get rid of gas they cannot sell. For most companies, this is a problem. For Chevron, it is an input cost advantage.<\/p>\n Instead of selling that gas at a deep discount, Chevron can burn it in its own power plant and sell the output (finished electricity) to Microsoft at a contracted rate. The closer the power plant is to the gas source, the less pipeline capacity matters. That is exactly what Project Kilby is designed to exploit.<\/p>\n <\/div>\n\n \n <\/span>Three Ways Chevron Gets Paid from One Project<\/span><\/h2>\n\n \n A standard power company buys fuel from someone else, generates electricity, and sells it. Chevron's position is different: the company already owns the gas in the ground. Project Kilby lets it earn at multiple points in that chain:<\/p>\n <\/div>\n\n \n Gas supply.<\/strong> Chevron can feed part of its own Permian Basin gas into the plant. That gas, which might otherwise be sold at a loss or flared, now has a guaranteed buyer: the plant itself.<\/li>\n Power generation margin.<\/strong> Electricity is worth more than the gas used to produce it. Chevron captures that difference by converting fuel into power on its own site.<\/li>\n Long-term capacity contract.<\/strong> Microsoft pays for the right to receive a guaranteed volume of electricity over 20 years. Even if actual consumption varies day to day, Chevron receives payment for keeping the capacity available.<\/li>\n Potential grid sales.<\/strong> The plant will initially serve Microsoft exclusively. If technical and commercial conditions allow, surplus capacity could be sold to other buyers through the regional grid over time.<\/li>\n <\/ul>\n\n \n The same cubic metre of gas that Chevron once had to sell at whatever the market offered now generates revenue at each of these steps.<\/p>\n <\/div>\n\n \n <\/span>A Business That Does Not Rise and Fall with Oil Prices<\/span><\/h2>\n\n \n Chevron's earnings have always tracked oil and gas prices closely. When prices are high, cash flows are strong. When they fall, profits shrink fast. This is the nature of commodity businesses, and investors who own CVX shares understand it comes with the territory.<\/p>\n Project Kilby introduces a different kind of income. A 20-year fixed-term contract with Microsoft means Chevron knows, years in advance, how much electricity it needs to deliver and roughly what it will be paid for it. If the agreement includes capacity payment structures or fuel cost pass-through clauses, the revenue from this project becomes largely insulated from swings in the oil market.<\/p>\n Think of it as the difference between selling wheat at whatever price the market sets each harvest, and owning a bakery with a long-term supply contract. Both use the same raw material, but one produces far more predictable income. Chevron has stated publicly that Project Kilby is designed to generate cash flow that is less sensitive to the commodity cycle. A series of similar plants, once built, would gradually shift more of Chevron's revenue into this steadier category.<\/p>\n <\/div>\n\n \n <\/span>How Much Could Project Kilby Actually Generate<\/span><\/h2>\n\n \n Chevron and Microsoft have not disclosed the electricity price in their agreement. To estimate the project's revenue potential, we use a range of 70 to 100 USD per MWh, built from publicly available benchmarks.<\/p>\n Average wholesale electricity prices in the ERCOT market<\/a> (the Texas grid) are lower than this range, but they reflect trading on the existing grid, which is a different product. Project Kilby is a new plant built specifically to supply one customer around the clock, every day. According to Lazard's estimates<\/a>, the all-in cost of electricity from a new gas plant in the US runs at 65 to 67 USD per MWh, which sets the floor. On top of that base, a long-term contract, dedicated capacity, and the ability to bypass grid congestion all justify a price premium. That gives us 70 USD per MWh as the low scenario, 85 USD as the base case, and 100 USD as the high end.<\/p>\n At 2.67 GW of capacity running at roughly 90% utilisation, the plant would produce around 21 TWh of electricity per year.<\/p>\n <\/div>\n\n\n\n $\"Estimated$ <\/a> Estimated annual revenue from Project Kilby at 2.67 GW capacity and 90% load factor under three power price scenarios. Final conditions of the agreement have not been disclosed. Past results do not guarantee future performance.<\/figcaption><\/figure>\n\n\n\n \n In the most favourable scenario, Project Kilby could generate over 2 billion USD in annual revenue for Chevron. Relative to the company's total scale, that is a meaningful but not dominant figure. The real importance of this number is what it signals<\/a>: if one plant can reach 2 billion USD, a portfolio of similar plants changes the financial picture significantly.<\/p>\n <\/div>\n\n \n <\/span>Why This Deal Could Be the Start of Something Bigger<\/span><\/h2>\n\n \n Project Kilby did not come out of nowhere. Back in 2025, Chevron, Engine No. 1, and GE Vernova announced a programme<\/a> to build plants with combined capacity of up to 4 GW for US data centres. At 2.67 GW, Project Kilby is the biggest piece of that programme.<\/p>\n If the Kilby plant delivers, on time, within budget<\/a>, and with reliable power, Chevron has a working proof of concept to take to other buyers. Amazon<\/a>, Alphabet<\/a>, Meta<\/a>, and Oracle are all spending tens of billions of USD on data centre infrastructure, and all of them face the same problem: securing enough power. Chevron can walk into those conversations with a completed project as evidence that the model works.<\/p>\n Chevron's position in this market is genuinely hard to replicate quickly. The company already owns gas in the Permian, has the engineering expertise to run complex energy assets, has access to capital for large projects, and has existing relationships with the equipment manufacturers building these plants. A tech company wanting to copy this approach would need years and billions of USD to build the same starting point.<\/p>\n If AI infrastructure spending continues to grow, powering data centres could become a standalone segment of Chevron's business, one that earns from the AI boom through electricity, without having to build AI models or take on the risks that come with them.<\/p>\n <\/div>\n\n \n \n \n Open a Trading Account<\/a> at RoboForex<\/div>\n Swap-free accounts, spreads from 0, and execution in 0.01 seconds.<\/div>\n <\/div>\n \n Open Account<\/a>\n <\/div>\n <\/div>\n\n \n <\/span>What This Means for CVX Shares Right Now<\/span><\/h2>\n\n \n The honest answer for the short term: not much. Construction spending starts before revenue does, and the plant will not be generating power until 2028. CVX shares will continue to be driven by the factors that have always mattered most: oil and gas prices, Permian Basin output, progress on Guyana projects, results from the Hess acquisition, dividend policy, and buyback<\/a> pace.<\/p>\n What the deal changes is the longer-term story. Once Project Kilby starts delivering power and generating cash, it adds a revenue stream that behaves very differently from the rest of Chevron's business. At full capacity, the plant could add several hundred million USD of cash flow per year. The exact number depends on Chevron's final ownership stake and the contract terms, but the direction is clear.<\/p>\n The more interesting question is what comes after Kilby. If Chevron closes two or three more contracts like this one over the next few years, the company starts to look meaningfully different: part oil major, part infrastructure operator with a contracted revenue base. That shift, if it happens, is what could gradually lift how the market values CVX.<\/p>\n <\/div>\n\n\n\n\n\n

<\/span>Chevron Enters the Data Centre Business<\/span><\/h2>\n\n \n Chevron has spent most of its history doing one thing: extracting oil and gas, refining it, and selling fuel. That model is not going away, but on 22 June 2026 the company added something new to it.<\/p>\n