Kodiak Signs 76 MW Power Deal With West Texas Data Center

Kodiak Gas Services signed a six-year agreement to provide 76 MW of behind-the-meter baseload power to a West Texas data center, using about 40 natural gas-fueled generation units.

What did Kodiak agree to provide?

The Woodlands-based Kodiak Gas Services will provide 76 MW of behind-the-meter baseload power capacity, including balance-of-plant services, under a six-year agreement with a West Texas data center.

The company plans to deploy approximately 40 reciprocating natural gas-fueled generation units. Deployment is expected to begin in the fourth quarter of 2026 and scale into the first quarter of 2027, with revenue recognition expected to begin in Q1 2027.

Who will receive the power?

Kodaik did not identify the data center operator, hyperscaler, or GPU designer involved in the agreement. The company said the operator is contracted with an investment-grade-rated hyperscaler, while a GPU designer is serving as guarantor of the data center lease.

The arrangement will provide dedicated primary power directly to the data center rather than relying solely on the broader electric grid.

The agreement marks Kodiak's second long-term contract to supply primary power to a data center. The company said approximately half of its current power portfolio is now covered by long-term power contracts.

CEO Mickey McKee: "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."

Kodiak is targeting two gigawatts of power generation capacity by 2030.

The Bottom Line

Kodiak's six-year agreement adds 76 MW of dedicated natural gas-fired generation for a West Texas data center as the company expands its behind-the-meter power business and works toward its 2030 generation target.