Microsoft Solves AI’s Biggest Bottleneck With Chevron Deal

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Microsoft secured a 20-year power agreement with Chevron to support a 2.67-gigawatt AI infrastructure project in Texas.

The deal addresses one of the biggest constraints facing AI growth: access to reliable, large-scale electricity.

Long-term energy cost visibility could strengthen Azure margins and reinforce Microsoft's AI leadership position.

Microsoft (NASDAQ: MSFT) investors just got an answer to the question hanging over the artificial intelligence (AI) infrastructure trade. Where does the power come from?

On June 22, Chevron (NYSE: CVX) and Microsoft signed a 20-year power purchase agreement. The deal funds Project Kilby, a 2.67-gigawatt natural gas plant in West Texas. The total cost for the campus is estimated at roughly $7 billion. Initial power is targeted for 2028.

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For Microsoft shareholders, this is the most consequential MSFT stock development since the OpenAI partnership. That may sound like hyperbole, but investors who have been paying attention to the issues surrounding the buildout of data centers will find the benefits from

Fuente original: Yahoo Finance (https://finance.yahoo.com/technology/ai/articles/microsoft-solves-ai-biggest-bottleneck-162000798.html)