Texas, June 22 -- Oil giant Chevron has entered into a pact with Microsoft for powering one of its data centres in the US state of Texas under a 20-year power purchase agreement.

The two companies will collaborate to build a co-located power facility, named Kilby, which will provide power to the data centre facility under a 20-year power purchase agreement.

The facility will deliver 2.67 gigawatts of power capacity to the Microsoft data centre using gas turbines from GE Vernova and additional capacity being provided by Solar Turbines, a wholly owned subsidiary of Caterpillar. The new facility will help mitigate the impact on the regional grid that consumers are dependent on.

Project Kilby is expected to generate tax revenue of more tha...