Kodiak Gas Services signs six‑year 76 MW West Texas data centre power deal
About 40 gas units are set for staged deployment from late 2026, with revenue expected to begin in the first quarter of 2027.
Ines Halvorsen
Deployment of 76 megawatts of gas-fired power is expected to begin in the fourth quarter of 2026 after Kodiak Gas Services, Inc. NYSEKGS announced a West Texas data centre agreement on Sept. 21. The six-year agreement is expected to start generating revenue in the first quarter of 2027, although Kodiak did not publish a contract value or price per megawatt-hour. The six-year counterparty is an unnamed data centre operator that Kodiak said has an investment-grade-rated hyperscaler under contract.
Kodiak shares NYSEKGS closed at US$53.56, up 1.11 per cent, at 4 p.m. EDT on Oct. 1 in New York. The Texas company supplies contract compression and distributed power services to energy and digital infrastructure customers.
The agreement is Kodiak's second long-term contract to provide primary power to a data centre, according to its Sept. 21 release. A GPU designer guarantees the operator's data centre lease, the company said; the release does not say that guarantee extends to Kodiak's power contract. Neither the operator, the hyperscaler nor the GPU designer was identified.
Kodiak's Power Infrastructure segment reported US$32.9 million in second-quarter 2026 revenue, according to its Aug. 6 results. The same release reported power fleet utilisation of 89.6 per cent for the quarter, its first full one following the acquisition of Distributed Power Solutions. At June 30, Kodiak reported US$1.7 billion in total liquidity and US$2.8 billion of debt.
“Approximately half of our current power portfolio is now under long-term power contracts,” Kodiak president and chief executive Mickey McKee said in the Sept. 21 release.
About 40 Gas Units Set For Staged Deployment
Kodiak said it expects to deploy approximately 40 reciprocating natural gas generation units, including the balance-of-plant equipment, to supply the 76-megawatt commitment. The staged deployment is due to begin in the fourth quarter of 2026 and continue into the first quarter of 2027, when revenue recognition is expected to start. McKee said the size of the order fits Kodiak's available power fleet and the West Texas location sits within its operating area.
The release did not give a generator manufacturer, equipment delivery lead time or a commissioning date. It also did not name a permitting authority or give a permit decision date. Kodiak described a target of two gigawatts of power generation capacity by 2030, but the signed West Texas commitment covers 76 megawatts over six years.
A separate data centre order puts Enerflex Ltd. TSEEFX NYSEEFXT on a later equipment timetable. Its Oct. 1 release says it will design, fabricate and assemble about 450 megawatts of gas-fired units for an unnamed North American developer, with deliveries scheduled to start in 2027 and finish in 2028. Enerflex's award is for equipment; Kodiak's agreement is to supply power for six years.
Read more: Enerflex wins approximately 450 MW data centre gas-power equipment order
For a regional fuel benchmark, the U.S. Energy Information Administration's Oct. 1 daily price table listed Houston-area natural gas at US$2.50 per million Btu for delivery that day. Kodiak did not disclose the fuel cost allocation or electricity price in its own agreement, so that spot quote is not the contract tariff.
The next dated test is the planned start of unit deployment in the fourth quarter of 2026. Kodiak expects deployment to continue into the first quarter of 2027, when it anticipates revenue recognition will start; it has not announced a first-power day.
