The 2.7-gigawatt project will have its own on-site power plant fueled by Chevron’s local natural-gas production.

Known as Project Kilby, the center is expected to deliver about 2.67 gigawatts of capacity through a phased, modular approach that enables incremental expansion over time. Most of the generation will come from large GE Vernova turbines and associated electrical infrastructure, with additional capacity provided by Solar Turbines, a wholly owned subsidiary of Caterpillar Inc.

Microsoft's announcement outlines the project, as well as how they plan to engage the community.

As part of the agreement, TPL contributed surface acreage in exchange for cash consideration and the exclusive right to source aquifer-derived water for the power generation facility and other associated aspects of the project.

Project Kilby is being sold as an AI-infrastructure milestone and a community-first investment. It is also the largest oil-major / Big-Tech power deal yet, an elegant route around both the Texas grid

The project will be built by Vistra in Ward County and will add two new natural gas-fired generating units at the company's Permian Basin Power Plant. State officials said the expansion will more than triple the facility's current generating capacity.

Texas lawmakers raised concerns Tuesday that limited reporting from data centers is leaving gaps in the state's water and energy planning.

Meta has reportedly secured new AI computing capacity from Crusoe data centers in Texas and Missouri.

Combined with a recently executed oil and gas lease and surface use agreement that is expected to provide Midland College with approximately $35 million for the project, the investment establishes a strong financial base for the Applied Technology Complex and the future expansion of high-demand workforce programs.