Microsoft in Talks With Chevron, Engine No. 1 Over $7 Billion Texas Power Plant

Microsoft Corp. is in exclusive talks with Chevron Corp. and investment fund Engine No. 1 over a long-term deal that would underpin a giant power plant in West Texas, providing electricity to a large data center campus.

The proposed natural-gas fired power plant is projected to cost about $7 billion and initially generate 2,500 megawatts of electricity, making it one of the largest of its kind in the US, according to people familiar with the matter, who asked not to be identified because the talks are ongoing.