Microsoft is in negotiations with Chevron and Engine No.1 over power agreements—Bloomberg reports.

2026-04-01 00:24:42

Abstract generation in progress

Investing.com—Bloomberg reported Tuesday that Microsoft (NASDAQ: MSFT) is in exclusive talks with Chevron (NYSE: CVX) and Engine No.1 to discuss an agreement to build a large integrated energy facility in West Texas to supply power for a data center campus.

Citing people familiar with the matter, Bloomberg said the planned natural gas power plant is expected to cost about $7 billion, and initially will generate 2,500 megawatts of electricity.

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This comes as Microsoft and other artificial intelligence “hyperscale companies” race to expand more computing capacity to meet the growing demand for AI technology. Supplying electricity to data centers is a key part of this push.

Microsoft is expected to invest up to $146 billion in AI capital expenditures in fiscal year 2026.

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