Microsoft and Chevron plan one of the largest gas-powered data center projects in US

Microsoft has signed a 20-year power purchase agreement with Chevron to supply energy from a new natural gas power plant. The deal would support one of the largest gas-powered data center projects in the US while locking in decades of carbon emissions.

The agreement highlights how surging data center demand is pushing tech companies toward fossil-fuel-backed power despite public climate commitments. It also signals that the AI infrastructure boom may increasingly strain clean energy goals unless renewables, storage, and grid capacity scale faster.