Kodiak Gas Services, Inc. (NYSE: KGS) sank on Monday markets, on the today announcement that it has entered into an agreement 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.
According to this morning’s news release, “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 CEO Mickey McKee. “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.”
KGS shares lost 91 cents, or 1.6%, to $57.77
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