Kodiak Gas Services to Supply 76MW of Behind-the-Meter Gas Power to West Texas Data Center

Texas-based gas firm Kodiak Gas Services has signed a six-year agreement to deliver 76MW of behind-the-meter baseload power to a data center in West Texas, marking a significant step in the growing trend of on-site gas generation for hyperscale computing infrastructure.

The company, headquartered just outside Houston, will deploy approximately 40 natural gas-fueled reciprocating generation units, including balance-of-plant equipment, for the unnamed data center operator. According to Kodiak, the data center operator has secured a contract with an investment-grade-rated hyperscaler, while a GPU designer serves as the guarantor of the data center lease. Neither the operator, the hyperscaler, nor the GPU designer was identified.

The gas-engine deployment is expected to commence in the fourth quarter of 2026 and scale into the first quarter of 2027. The deal represents Kodiak's second long-term contract to supply primary power to a data center, reinforcing the company's strategy to expand its distributed power business beyond its traditional oil and gas customer base.

"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 CEO. McKee added that the company targets 2GW of power generation capacity by 2030 and views the latest deal as a replicable model providing "a clear path toward contracting additional power capacity."

The agreement underscores the broader industry shift toward behind-the-meter power solutions as data center developers seek faster paths to energization amid grid interconnection delays and surging electricity demand from AI workloads. Kodiak, which provides contract compression, distributed power, and energy infrastructure services, sees growing opportunities in serving data center developers and operators alongside its established oil and gas producer and midstream operator clientele.