Chevron wants a school district tax break for a data center power plant
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- Chevron filed a tax‑abatement application under Texas’ Jobs, Energy, Technology, and Innovation (JETI) Act for a West Texas power plant, projecting over $227 million in savings over ten years.
- Texas Comptroller board recommended approval, and the Pecos‑Barstow‑Toyah school board approved the request, the the first JETI‑approved tax break for a power plant dedicated to data‑center use.
- Chevron entered an exclusivity agreement with Microsoft and investment fund Engine 1, though both companies say no definitive power‑supply agreement has been finalized.
- Microsoft confirmed it is in discussions with Chevron about purchasing power, but no commercial terms have been set.
- Chevron says the plant will provide over 25 permanent, full‑time jobs, and the tax abatement is funded by the state, leaving the school district’s revenue unchanged.
Why it matters: Chevron stands to save $227 M while Texas funds the tax break, and Microsoft could secure cheap power for a future data hub, but school districts avoid revenue loss and public scrutiny over data‑center incentives intensifies.
