Microsoft, Chevron, and Engine No. Exclusive power supply agreement signed by Microsoft, Chevron and Engine No.

Microsoft, Chevron, and Engine No. The three companies announced on Tuesday that they had entered into a power supply and generation exclusivity agreement.

Microsoft and other technology companies are rushing to secure the electricity they need for their data centers, which will power artificial intelligence services like ChatGPT or Copilot.

The three companies said that "no commercial terms have yet been finalized and there is currently no definitive agreement."

Engine No. Engine No. 1 and Chevron had?already announced a partnering last year, to build natural-gas-based power plants near?data centres in the U.S. The?two planned to use GE Vernova?turbines.

Bloomberg News reported on the Microsoft deal. The long-term contract is linked to a natural gas-fired plant that would be built in West Texas.

Bloomberg reported that the facility will initially produce 2,500 megawatts, enough to power a large campus of data centers.

In 'November, Chevron announced that its first project for powering an AI datacenter using natural gas will be built in West Texas. The goal is to start up by 2027.

Bloomberg News reported that Microsoft had agreed to rent "a data center project" in Texas, which was originally being developed by Oracle and OpenAI.

(source: Reuters)