Chevron subsidiary Energy Forge One has filed an application with the State Comptroller’s board to obtain a tax abatement for a power plant it’s building in West Texas. The application comes as big tech companies are battling rising public fury about data centers and electricity costs, and as lawmakers start to cast a more critical eye on ballooning incentives for data centers.
Chevron subsidiary Energy Forge One has filed an application with the State Comptroller’s board to obtain a tax abatement for a power plant it’s building in West Texas .
The comptroller’s office made a recommendation to support the application’s approval, which is the first such approval under the program for a power plant intended solely for data center use. Microsoft was looking into purchasing power from the Energy Forge project, and Chevron entered into an ‘exclusivity agreement’ with Microsoft and Engine 1, an investment fund involved in the project.
The potential tax abatement for the project comes as big tech companies are battling rising public fury about data centers and electricity costs. The Energy Forge plant alone could emit more than 11.5 million tons of CO2 equivalent annually, more than the country of Jamaica emitted in 2024. The application says the plant will provide ‘over 25 permanent, full-time jobs,’ though there’s no requirement to do so because it’s considered an electricity generation facility.
The planned gas plant won’t connect to the grid, instead providing ‘electricity for direct consumption by a data center.
Chevron Energy Forge One Tax Abatement Power Plant Data Center Microsoft Exclusive Agreement Tax Incentives Ballooning Incentives Data Centers Electricity Costs Texas Jobs Energy Technology And Innovation (JETI) Act Behind-The-Meter Gas Plants Greenhouse Gases Environmental Regulations West Texas Fossil Fuel Production Hub Data Center Development Tax Revenues
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