Rehlko Secures 1.25GW Gas Engine Deal with Innio to Power Data Center Boom
April 10, 2026
In a major move to address the surging energy demands of the data center industry, U.S. power generation firm Rehlko has entered into a strategic supply agreement with Innio Group for 1.25 gigawatts of natural gas engine capacity. The deal underscores the critical role flexible, on-site power generation is playing as data center expansion, fueled by artificial intelligence and cloud computing, strains traditional electricity grids.
The agreement stipulates that Innio will deliver the substantial capacity over the next three years to Rehlko’s subsidiary, Clarke Energy. This secured supply is intended to support Rehlko's growing pipeline of projects specifically targeting the data center market. While the exact configuration of the gas engines was not detailed, Innio's portfolio, including its Jenbacher and Waukesha brands, offers units with power outputs ranging from 250 kilowatts to 10.6 megawatts, providing flexibility for various project scales.
Brian Melka, President and CEO of Rehlko, emphasized the long-term nature of the partnership, stating, "This agreement strengthens our ability to support customers making long‑term investments in data‑center infrastructure and flexible power generation. Securing multi‑year supply enhances visibility and confidence in delivery at a time when demand is being driven by structural, rather than cyclical, market forces." Dr. Olaf Berlien, President and CEO of Innio, added, "With this framework agreement, we are strengthening our partnership with Rehlko and creating long‑term planning certainty in a market with rapidly growing demand. It ensures that our customers can continue to rely on proven technology and dependable execution even in highly critical applications such as data centers."
The transaction highlights a significant trend where data center operators and their power partners are proactively locking in capacity for reliable, dispatchable generation assets. Natural gas engines offer a bridge solution, providing immediate grid relief and backup power with lower emissions than traditional coal plants. For Rehlko, formerly known as Kohler Energy before its 2024 rebrand, this deal solidifies its position in the competitive critical power landscape, leveraging its Clarke Energy subsidiary's expertise in distributed energy solutions to capture a key segment of the infrastructure market.
Source: datacenterdynamics
