Chevron's Microsoft Data Center Deal Was a Bigger Story Than Its Earnings. Here's Why.
Chevron is getting in on the AI boom with its recent long-term energy agreement with Microsoft.
Overview
Chevron (NYSE: CVX) posted stellar second-quarter results at the end of July, beating the street's estimates thanks to higher oil prices, increased production volumes, and strong margins.
However, even bigger news is that Chevron has entered into a 20-year power purchase agreement (PPA) to build a natural gas-powered facility to power Microsoft's (NASDAQ: MSFT) artificial intelligence (AI)-focused data center in Texas. The move comes as hyperscalers scramble to find energy for the ever-growing data center footprints.
Details
For Chevron, it locks in long-term revenue, insulating it from volatile commodity prices. Here are details of its recent deal and what it means for Chevron investors.
Source
Originally published at www.fool.com.