The $200m plant, which will be located around 70 miles northwest of Fort Worth, is expected to be operational by June 2015.
The plant will provide power into the same transmission grid that delivers electricity for Microsoft’s data-center in San Antonio, Associated Press reports.
Microsoft energy strategy director Brian Janous said the company is definitely looking at this as a first of a kind, but it fits into its overall desire to have more control over its energy supply.
Microsoft is funding the project through its collected carbon fees.
The plant will produce around 430,000MWh of energy, which is enough to power up to 45,000 homes.
