Microsoft is constructing a roughly 2-gigawatt data centre campus in Pecos, Texas, featuring an on-site gas plant to bypass the public power grid. This multibillion-dollar project, led by cloud chief Noelle Walsh, involves over 6,000 construction jobs at peak and will run for five to seven years. Chevron will supply the gas turbines required for the facility, which is expected to operate by around 2028. The company claims closed-loop cooling will keep total lifecycle water use to a fraction of that consumed annually by a typical fast-food restaurant. In an open letter to Pecos and Reeves County, Microsoft states it will not drive up local power prices and will return more water to the environment than it uses. These assurances address the exact pain points that have turned towns against data centres, specifically higher electric bills and excessive water consumption. According to Data Center Watch, dozens of projects were cancelled in 2026 due to bipartisan opposition from local communities. The move reflects a wider trend where major tech firms build their own power generation because the grid cannot keep up with demand. This strategy avoids waiting years for a hookup but introduces new dependencies on fossil fuels and local infrastructure.
- The site represents one of the biggest single capacity adds in Microsoft’s history.
- Hundreds of permanent roles will be created alongside the construction workforce.
- Local opposition to data centres has frequently led to project cancellations in recent years.
