--- title: Texas politics may delay Chevron data centre decision,... description: A final investment decision on Project Kilby, Chevron's roughly 2.67GW gas-powered data center near Pecos, Texas, that will supply a Microsoft AI campus under... canonical: https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Texas politics may delay Chevron data centre decision, Semafor reports | daily.dev og:description: A final investment decision on Project Kilby, Chevron's roughly 2.67GW gas-powered data center near Pecos, Texas, that will supply a Microsoft AI campus under... og:url: https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc og:image: https://api.daily.dev/og/posts/miGoxbPVc.png og:image:alt: Texas politics may delay Chevron data centre decision, Semafor reports og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Texas politics may delay Chevron data centre decision, Semafor reports **[The Next Web](https://daily.dev/sources/tnw)** · 2 min read · 0 upvotes · 0 comments ## Summary A final investment decision on Project Kilby, Chevron's roughly 2.67GW gas-powered data center near Pecos, Texas, that will supply a Microsoft AI campus under a 20-year power deal, may slip from late this year to 2027. The likely delay stems from Governor Greg Abbott's order halting new environmental permits for data centers while state grid and water agencies conduct audits. Chevron's power solutions VP says permitting has caused slowdowns, though the project remains targeted to produce power by 2028, with earthworks underway and contracts with partner Joulent expected to be signed within weeks. Data centers have become a contested issue ahead of Texas's November elections, with candidates from both parties pushing for tighter water regulations. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why might the investment decision on Chevron's Project Kilby data center be delayed to 2027? A state-ordered freeze on new environmental permits for Texas data centers, issued by Governor Greg Abbott, is likely to push back the final investment decision on Project Kilby from the end of this year to 2027. The pause applies until state grid and water agencies complete audits, and it covers self-powered projects like Kilby that an earlier grid-connection pause in August did not reach. _Developers building on AI infrastructure can follow how regional energy and permitting fights shape data center capacity through daily.dev._ ### What is Chevron's Project Kilby data center and who is it being built for? Project Kilby is a roughly 2.67GW gas-powered data center near Pecos in the Permian Basin that will use on-site gas turbines to supply power for a Microsoft data center campus. Chevron signed a 20-year power deal with Microsoft for the site, with first power planned for 2028, and partner Joulent (which grew out of investment firm Engine No. 1) is finalizing construction contracts. _Those tracking how hyperscalers secure dedicated power for AI data centers can follow updates like this on daily.dev._ ## Similar posts on daily.dev - [Chevron Microsoft gas deal to power Texas AI data centre](https://daily.dev/posts/chevron-microsoft-gas-deal-to-power-texas-ai-data-centre-rc88lt1jh) · The Next Web · 0 upvotes · 0 comments - [Microsoft and Chevron plan one of the largest gas-powered data center projects in US](https://daily.dev/posts/microsoft-and-chevron-plan-one-of-the-largest-gas-powered-data-center-projects-in-us-nnrkwmqpb) · TechCrunch · 0 upvotes · 0 comments - [Powering the next wave of AI: Expanding capacity with our new datacenter in Pecos](https://daily.dev/posts/powering-the-next-wave-of-ai-expanding-capacity-with-our-new-datacenter-in-pecos-8qpocft76) · Microsoft · 0 upvotes · 0 comments --- Tags: [#microsoft](https://daily.dev/tags/microsoft), [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure) [View this post on daily.dev](https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Texas politics may delay Chevron data centre decision, Semafor reports","url":"https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc"},"datePublished":"2026-10-01T12:47:44.650Z","dateModified":"2026-10-01T12:48:26.606Z","description":"A final investment decision on Project Kilby, Chevron's roughly 2.67GW gas-powered data center near Pecos, Texas, that will supply a Microsoft AI campus under...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/ec2eb347693f35bf53e1dc342c2d55b1?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/ec2eb347693f35bf53e1dc342c2d55b1?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"The Next Web","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"The Next Web","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tnw","url":"https://daily.dev/sources/tnw"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"microsoft,ai-infrastructure","timeRequired":"PT2M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"The Next Web","item":"https://daily.dev/sources/tnw"},{"@type":"ListItem","position":3,"name":"Texas politics may delay Chevron data centre decision, Semafor reports"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/texas-politics-may-delay-chevron-data-centre-decision-semafor-reports-migoxbpvc#faq","mainEntity":[{"@type":"Question","name":"Why might the investment decision on Chevron's Project Kilby data center be delayed to 2027?","acceptedAnswer":{"@type":"Answer","text":"A state-ordered freeze on new environmental permits for Texas data centers, issued by Governor Greg Abbott, is likely to push back the final investment decision on Project Kilby from the end of this year to 2027. 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