Application Submitted For Data Center Power Station

Chevron, through its subsidiary Energy Forge One, is pursuing a substantial tax break in Texas for a natural gas power plant project designed to exclusively power a proposed data center campus in West Texas. The facility, planned near Pecos in the Permian Basin, would generate approximately 2,500 megawatts of electricity for an adjacent AI-focused data center, potentially serving Microsoft, via a "behind-the-meter" arrangement. This approach aims to circumvent lengthy public utility grid connection delays. The company has applied under Texas' Jobs, Energy, Technology, and Innovation (JETI) program, which could save Chevron over $227 million in local school property taxes over a decade. While Chevron states no final agreement with Microsoft is complete and that incentives apply only to the power facility, critics argue this reliance on fossil fuels contradicts tech companies' sustainability pledges. Environmental groups warn the plant could emit over 11 million tons of greenhouse gases annually, positioning it as a major regional polluter. The project is drawing scrutiny from Texas lawmakers concerned about rising electricity demand and consumer prices amidst substantial public subsidies for AI infrastructure.