Texas Permitting Moratorium Could Delay Chevron-Joulent Data Center Project in West Texas
Project Kilby, a Chevron-Joulent venture planned for a rural area of West Texas, could face a delay in its final investment decision because of Texas’ moratorium on new data center permits. The project would supply nearly 3 gigawatts of behind-the-meter gas-generated power to a Microsoft data center and remains expected to begin producing electricity in 2028.
Project Kilby, a joint venture between Chevron and energy developer Joulent, is moving ahead with preliminary earthmoving in West Texas for a massive Microsoft data center. The facility is designed to use nearly 3 gigawatts of power from gas turbines operating independently of the Texas grid, with construction contracts nearing completion and first power still targeted for 2028.
Chevron Vice President for Power Solutions Daniel Droog said the final investment decision, initially expected by year-end, could be pushed to 2027 because of a moratorium on new data center permits imposed by Gov. Greg Abbott. Joulent CFO Michael Wortley said the project meets the state’s permitting prerequisites, while the developers’ access to gas, existing turbine equipment and a long-term Microsoft offtake agreement provide financial and operational advantages.