Kodiak Gas Services has agreed to supply 76 megawatts of behind-the-meter baseload power capacity to a data center in West Texas, under a six-year contract the company announced this week.
Kodiak will deploy about 40 reciprocating natural gas-fueled generation units, plus balance-of-plant equipment, to serve the site. The data center operator is under contract with an investment-grade-rated hyperscaler, and a GPU designer guarantees the data center lease.
Deployment of the generation units is set to begin in the fourth quarter of 2026 and scale into the first quarter of 2027. Kodiak expects to start recognizing revenue from the contract in the first quarter of 2027.
Kodiak's second data center power deal
Kodiak President and Chief Executive Officer Mickey McKee called the agreement "an ideal situation for us," pointing to the fit with the company's available power fleet and its existing operational footprint in West Texas. McKee said the deal is Kodiak's second long-term contract to supply primary power to a data center, and that about half of Kodiak's current power portfolio is now under long-term power contracts.
What behind-the-meter power means
Behind-the-meter power is generated on site and delivered directly to a customer's operations, rather than through the local utility grid.
McKee pointed to Kodiak's commercial pipeline of power projects and its operational track record supplying power to data centers as the basis for pursuing more contracts. Kodiak has set a target of 2 gigawatts of power generation capacity by 2030.
