Kodiak signs six-year data center power deal
- Kodiak Gas Services (NYSE:KGS) signed a six-year agreement to provide 76 megawatts of behind-the-meter power capacity to a West Texas data center.
- The company will deploy about 40 natural gas-powered generation units starting in Q4 2026.
- The contract expands Kodiak’s data center power business as it develops additional power generation capacity.
Kodiak Gas Services (NYSE:KGS) entered an agreement to provide 76 megawatts of behind-the-meter baseload power capacity, including balance of plant services, to a West Texas data center for six years.
Under the agreement, Kodiak will deploy approximately 40 reciprocating natural gas-fueled generation units to a data center operator contracted with an investment-grade-rated hyperscaler and supported by a GPU designer as guarantor of the data center lease.
Deployment of the power assets is expected to begin in the fourth quarter of 2026 and continue into the first quarter of 2027, with revenue recognition anticipated to start in the first quarter of 2027.
Kodiak said the contract represents its second long-term agreement to supply primary power to a data center, with approximately half of its current power portfolio now under long-term power contracts.
The company stated that it is targeting two gigawatts of power generation capacity by 2030 and continues to develop additional behind-the-meter power projects for data center customers.
