Microsoft secures 20-year natural gas deal with Chevron for new Texas data center
Microsoft is partnering with Chevron in a 20-year natural gas deal to power a new "behind the meter" data center in Texas, with GE Vernova and Caterpillar supplying turbines. This development comes amid growing public pushback against data centers due to concerns over water use and electricity costs, noted across various communities including New Jersey towns.
Microsoft has entered into a significant 20-year agreement with energy giant Chevron to supply natural gas for a new data center being developed in Texas. This data center is designed to be "behind the meter," meaning it will operate independently of the wider electricity grid, thus avoiding competition for power with other consumers. GE Vernova and Caterpillar are slated to provide the necessary turbines for this project, which is expected to bring substantial economic benefits to the region.
The development highlights the intense capital spending in the artificial intelligence sector, driving the demand for new data centers. However, this boom is not without its challenges. The article notes a growing public backlash against data center projects across the United States. Concerns primarily revolve around high water consumption and increased electricity costs, which have galvanized opposition in many communities. The piece references a recent Time magazine article on the political power of these opposition groups and even cites instances of New Jersey towns "rebelling" against data centers, even when no specific plans for construction were in place. These public sentiments pose a significant risk to the continued expansion of AI infrastructure.