Kodiak Gas Services, Inc. announced that it has agreed to provide 76 megawatts of behind-the-meter, baseload power capacity, including balance of plant, to a West Texas data center for a term of six years.
Under the terms of the agreement, Kodiak will deploy approximately 40 reciprocating natural gas-fueled generation units to a data center operator that is contracted with an investment-grade-rated hyperscaler and has a GPU designer as guarantor of the data center lease.
Timeline for power deployment
Deployment of the power assets is expected to begin in the fourth quarter of 2026 and scale into the first quarter of 2027, with revenue recognition anticipated to start in the first quarter of 2027.
“Today’s announcement represents an ideal situation for us; the size fits our available power fleet, the location is within our established operational footprint in West Texas, and the customer has strong commercial and financial support,” said Mickey McKee, Kodiak’s President and Chief Executive Officer. “This represents Kodiak’s second long-term contract to supply primary power to a data center. Approximately half of our current power portfolio is now under long-term power contracts.”
“We have a robust commercial pipeline of power projects, which, combined with our demonstrated track record of operational performance in supplying behind-the-meter power to data centers, provides a clear path toward contracting additional power capacity. As we progress towards our targeted two gigawatts of power generation capacity by 2030 and advance additional commercial opportunities, we are well positioned to drive sustainable growth and create long-term value for our shareholders.”
