04:29 AM EDT, 04/01/2026 (MT Newswires) -- Microsoft ( MSFT ) is in discussions with Chevron ( CVX ) and Engine No. 1 over a long-term agreement covering an energy complex in West Texas, providing electricity to a large data center campus, news outlets reported late Tuesday.

The proposed natural gas-fired power plant is anticipated to cost roughly $7 billion and initially produce 2,500 megawatts of electricity, Bloomberg News reported, citing people familiar with the matter.

"No commercial terms have been finalized, and there is no definitive agreement at this time," the parties were quoted as saying by Bloomberg and Reuters in a statement.

Microsoft ( MSFT ), Chevron ( CVX ), and Engine No. 1 didn't immediately respond to MT Newswires' requests for comment.