What Chevron is doing
Chevron says work is advancing on permits, engineering and financing for Project Kilby. "And we don't see any of those things impacting the overall schedule of first power in 2028," Chief Financial Officer Eimear Bonner said, adding that the project is set to ramp by 2031.
Earlier this year, Chevron and Joulent LLC reached an agreement with Microsoft to provide natural gas for a large data center in the Permian Basin. The company still expects to deliver first power on time.
The permitting pause
Facing local pushback, Governor Greg Abbott put digital infrastructure permitting on hold and paused data center developments. That decision has held up Project Kilby, even as Chevron maintains its schedule. Critics argue the pause will be short, noting that Tuesday's elections feature Abbott seeking a fourth term.
Power and water footprint
Bonner said the site will generate its own power, so it will not lift consumer electricity prices. Cooling will rely on non potable water, keeping drinking water unaffected. "That is why on August 6th, Governor Abbott announced that the Kilby project complies with his standards," Bonner said.
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Investor take
The bottom line: Chevron is signaling that schedule risk is contained even under a permitting suspension, with first power aimed at 2028 and a ramp to 2031. For your portfolio, that keeps Chevron's Permian data center energy plan intact while giving Microsoft a route to add compute without tapping the grid.
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