Chevron Corporation CVX recently reached a key milestone for Project Kilby by signing an agreement with Texas Pacific Land Corporation TPL to secure the land and water resources needed to support the project's development.
As artificial intelligence, cloud computing and digital services continue to expand, the demand for reliable and large-scale power infrastructure is growing rapidly. Chevron is taking a proactive role in meeting this need through Project Kilby, a large-scale power generation development in Reeves County, TX. Designed to support a major customer data center, the project represents Chevron’s commitment to delivering dependable energy solutions that enable technological innovation and economic growth.
Securing Critical Resources for Long-Term Success
Under the agreement, TPL has contributed surface acreage to support the development of the power generation facility and associated infrastructure. In addition, it will provide exclusive access to aquifer-derived brackish groundwater for the project.
These resources are essential for ensuring the efficient operation of large-scale power infrastructure while supporting Chevron’s objective of developing reliable energy assets that can meet the growing electricity demands of data centers and other technology-driven industries.
The collaboration highlights the importance of strategic partnerships in accelerating infrastructure development and creating long-term value for local communities and industry stakeholders.
CVX Supports Responsible Water Stewardship
Water stewardship remains a central priority for Chevron as Project Kilby progresses. Recognizing the importance of preserving freshwater resources in West Texas, the project will utilize non-potable brackish groundwater supplied by TPL.
This approach helps reduce pressure on shared freshwater supplies while enabling the development of critical energy infrastructure. It also aligns with broader regional efforts to advance sustainable water management practices, including initiatives focused on the reuse and treatment of water resources associated with energy operations.
By prioritizing alternative water sources, Chevron, currently carrying a Zacks Rank #3 (Hold), is demonstrating that large-scale infrastructure projects can be developed responsibly while addressing the needs of both industry and local communities.
Strengthening West Texas as a Technology and Energy Hub
The Permian Basin has long been recognized as a global energy powerhouse. Increasingly, it is also emerging as an attractive location for data centers and advanced computing infrastructure, backed by its abundant energy resources, skilled workforce and supportive business environment.
Project Kilby contributes to this transformation by helping establish the region as a destination for next-generation digital infrastructure. The combination of reliable power generation, strategic land availability and innovative water solutions creates a strong foundation for future investment and economic development.
As demand for computing capacity continues to rise, projects like Kilby will play an important role in supporting both the energy and technology sectors.
CVX Is Creating Value Through Collaboration
Chevron views collaboration as a critical component of successful infrastructure development. By working closely with trusted partners such as TPL, engaging transparently with local communities and focusing on responsible resource management, the company is creating a framework for sustainable growth.
According to the vice president of Power Solutions at Chevron, securing access to land and reliable non-potable water supplies while maintaining open community engagement helps support economic development without losing sight of environmental stewardship.
This balanced approach reflects Chevron’s commitment to delivering practical energy solutions that meet evolving customer needs while contributing positively to the regions in which it operates.
Powering the Future of Digital Infrastructure
Project Kilby represents more than a power generation facility — it is an example of how energy and technology can come together to support the future digital economy. Through strategic partnerships, responsible water management and long-term infrastructure investment, Chevron is helping create the foundation required to power the next generation of data centers and AI-driven innovation.
As development progresses, Chevron remains focused on delivering reliable energy, supporting local communities and advancing solutions that enable sustainable economic growth across West Texas and beyond.
Key Picks
Investors interested in the energy sector may consider some top-ranked stocks like Global Partners LP GLP and Crescent Energy Company CRGY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. It owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP’s 2026 earnings indicates 113.1% year-over-year growth.
Crescent Energy is a U.S. onshore oil and gas producer focused on three major basins: the Eagle Ford in Texas, the Permian in Texas and New Mexico and the Uinta in Utah. The Zacks Consensus Estimate for CRGY’s 2026 earnings indicates 39.4% year-over-year growth.
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This article originally published on Zacks Investment Research (zacks.com).