Microsoft’s Twin AI Push: Classroom Copilot Upgrades and a 2.67GW Gas Pact — Stock Still in the Red

Microsoft unveils free AI classroom features and a massive gas-fired power plant for data centers, but investor skepticism keeps stock 33% below peak.

Microsoft is tackling the AI boom from two very different angles this week: rolling out new classroom features to boost adoption of its Copilot tools, while simultaneously signing a massive 20-year gas-fired power deal to keep its data centers running. Yet neither move has been enough to lift the company’s stock out of its slump.

The software giant unveiled the third edition of its annual AI in Education Report on June 24, 2026, based on a survey of 3,345 people across K-12 and higher education institutions in six countries. The headline figure is striking: 92% of students and education leaders, along with 88% of teachers, say they are already using AI for school-related tasks. Fifty-eight percent of institutions are actively implementing or scaling AI.

But usage doesn’t equal proficiency. The survey also found that 77% of students and 53% of teachers have never received any formal AI training. At the same time, 66% of educators and 52% of students want their schools to offer monthly or quarterly training sessions. Microsoft aims to close that gap by embedding new AI features directly into its existing Microsoft 365 Education ecosystem — without charging extra.

Among the additions are Unit Plans in the Teach section, Student AI Guidelines, Learning Groups in Assignments, and the Copilot Notebooks feature, now included at no additional cost in the Microsoft 365 Copilot app. The Study and Learn Agent will also roll out via Copilot Chat. The strategy is to make AI a seamless part of everyday workflows rather than a standalone product. That approach has already been paying off: Microsoft 365 Commercial Cloud revenue grew 19% last quarter, and total company revenue hit $82.89 billion in the third quarter of fiscal 2026, up 18% year over year.

On the energy front, Microsoft is taking a far more capital-intensive route to support its AI ambitions. The company has signed a 20-year power purchase agreement with Chevron to build a dedicated natural gas plant in Texas, dubbed the Kilby Project. Developed by a Chevron subsidiary in partnership with Engine No. 1, the facility will deliver around 2.67 gigawatts of capacity, using turbines from GE Vernova and Caterpillar’s Solar Turbines unit. The electricity will be dedicated to a new Microsoft campus in Pecos, easing pressure on the regional grid. Chevron expects to make a final investment decision by the end of 2026, with first power flowing in 2028. Construction is expected to create more than 6,000 jobs, followed by hundreds of permanent positions.

Despite the scale of both initiatives, investors remain skeptical. The stock has seesawed between €321.65 and €327.35 in recent days, roughly 33% below its 52-week high from October 2025 and down about 19–20% year to date. The relative strength index stands at 35.8, deep in oversold territory, yet no meaningful rebound has materialized. The shares also trade well below their 200-day moving average of €385.15.

The mixed reception reflects a broader tension: Microsoft is spending billions on AI infrastructure — including power generation — while the market waits for those investments to translate into higher margins and revenue growth. The Chevron pact also raises environmental questions, given the company’s ambitious climate targets. Chevron maintains the plant will meet strict emissions standards, but the fossil-fuel solution sits uncomfortably alongside Microsoft’s green pledges.

Microsoft will showcase its new education tools at ISTELive 2026 in Orlando from June 28 to July 1. Whether that event — or the Texas power project — can shift the narrative around the stock depends less on individual features and more on whether Wall Street starts to see a clear payoff from the company’s enormous AI-related spending.