Chevron may postpone the final investment decision for Project Kilby, its natural gas-powered data center project in West Texas, from late 2026 to 2027. Project Kilby is part of a 20-year agreement to supply dedicated power to a large Microsoft data center.
The potential delay results from a temporary, statewide freeze on environmental permits for data centers. Texas Governor Greg Abbott ordered this freeze in September. State agencies are auditing the industry's impact on the power grid and water resources. A Chevron executive acknowledged that permitting could cause a slowdown. The project still targets its first power delivery in 2028.