National Grid Is Spending $1.75 Billion to Power Microsoft’s AI — by Bypassing the Grid
National Grid is investing $1.75 billion in Joulent LLC, a Houston startup, to build a 2.67-gigawatt gas-fired power plant in West Texas. This plant, a joint venture with Chevron, will directly power a Microsoft data center under a 20-year power purchase agreement, bypassing the public electricity grid. This "Across-the-Meter" model aims to address the rapid power demand of AI infrastructure that traditional grids struggle to meet.
National Grid, the British utility operating England's high-voltage transmission network, announced a $1.75 billion investment in Joulent LLC, a Houston-based startup. This investment, a 35% minority stake, will fund Project Kilby, a 2.67-gigawatt gas-fired power plant located in West Texas.
The project is a 50/50 joint venture between Joulent and Chevron Corporation's Energy Forge, with GE Vernova supplying the turbines. The plant is designed to power a Microsoft data center directly, bypassing the public electricity grid through an "Across-the-Meter" model, which co-locates power generation at the data center fence line. Microsoft has signed a 20-year power purchase agreement for the plant's full output, aiming for guaranteed baseload power on a faster timeline than traditional grid interconnections.
Joulent founder and CEO Chris James emphasized the deal addresses the accelerating demand from American innovation outpacing existing power infrastructure, particularly from AI applications. National Grid CEO Zoë Yujnovich stated the investment is a "disciplined, partner-led investment in contracted critical infrastructure for the AI-driven large load economy." A final investment decision is anticipated by the end of 2026, with the first power delivery targeted for 2028. However, the article notes potential execution risks related to permitting, turbine delivery, and EPC contract logistics, making the 2028 target uncertain.