Chevron said on October 30 that its plan to supply power to a Microsoft data center in the Permian Basin of West Texas remains on schedule, even though Governor Greg Abbott has paused permits for digital infrastructure projects in the state.
The company still expects the site, referred to as Project Kilby, to receive first power in 2028, with a ramp-up planned through 2031. Chevron chief financial officer Eimear Bonner told investors that permitting, engineering and financing work is not expected to change that timeline. Chevron and Joulent LLC agreed earlier this year to supply natural gas to the facility.
Bonner described the campus as self-supplied, meaning it will generate its own electricity rather than draw from the public grid. On that basis, she said, the project should not raise power prices for consumers. She added that cooling will rely on non-potable water, so local drinking water supplies are not affected.
The governor's pause stems from concerns about grid strain, water use and community opposition to data center development across Texas. Bonner said Abbott announced on August 6 that the Kilby project meets his standards. Some observers expect the broader pause to be short, noting that Abbott is seeking a fourth term in Tuesday's election.
The project shows how large data center developers in Texas are moving ahead with their own generation while state officials review the effect of new load on the grid and environmental permits.
Source: Briefs Finance -- https://www.briefs.co/news/chevron-says-project-kilby-stays-on-track-despite-texas-perm/