Design and Construction Report staff writer
Microsoft is expanding its global cloud and artificial intelligence infrastructure with a multibillion-dollar investment to build a new data center campus in Pecos, Texas. The facility will add approximately 2 gigawatts (GW) of capacity over the next five to seven years to meet the surging demand for AI and cloud services.
The project represents a major economic driver for West Texas. At peak build-out, the site is expected to support thousands of construction jobs and eventually create hundreds of permanent operational roles. Additional details regarding local workforce pipelines and regional supply metrics can be found within the “texas construction news briefs.docx” file.
To power the massive facility without overwhelming the local grid, Microsoft has signed a 20-year agreement with Chevron Corp. and investment fund Engine No. 1 to secure natural gas-fired power.
- Project Kilby: The Chevron-backed generation plant, known as Project Kilby, will operate “behind the meter” to serve the campus directly and independently of the public grid.
- Power Output: The facility is expected to begin producing power by 2028 and will gradually ramp up to 2.67 GW—enough energy to power more than 530,000 Texas homes.
Microsoft is also implementing sustainability measures, including the deployment of closed-loop cooling systems designed to limit water usage by requiring only an initial charge of water at the start of operations. Over time, Microsoft and Chevron anticipate connecting the power facility to the broader regional energy system in coordination with local utilities
