Kodiak Gas Services has secured its second long-term agreement to supply primary power to a data center, this time committing roughly 40 reciprocating natural gas-fueled generation units to a single site in West Texas, a transaction the company says will bring approximately half of its power portfolio under long-term contracts.

Contract Terms and Timeline

Announced on September 21, 2026, the six-year agreement covers 76 megawatts of behind-the-meter, baseload power capacity delivered to a data center operator in West Texas.

The deal also encompasses the balance of plant services. Kodiak expects to begin deploying generation assets before the end of 2026, with that process scaling into the first quarter of 2027. Revenue recognition from the contract is anticipated to begin in the first quarter of 2027.

Who Is Behind the Data Center

Kodiak disclosed several details about the counterparties involved without naming them directly.

The data center operator holds a contract with an investment-grade-rated hyperscaler, and a GPU designer is serving as guarantor of the data center lease. Kodiak did not identify the hyperscaler or the GPU designer in its announcement.

Why West Texas Works for Kodiak

The Woodlands, Texas-based company described the project location as falling squarely within its existing operational footprint. President and Chief Executive Officer Mickey McKee emphasized that the project fits Kodiak's available power fleet in terms of scale, adding that the customer's commercial and financial backing strengthened the deal's appeal.

"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," McKee said in the company's press release.

Kodiak describes itself as a provider of contract compression, distributed power, and energy infrastructure services, with a customer base that spans oil and gas producers, midstream operators, and data center developers and operators.

Portfolio Shift Toward Long-Term Commitments

With this agreement in place, McKee said roughly half of the company's current power portfolio now sits under long-term power contracts.

Kodiak characterized the West Texas deal as its second long-term contract specifically for supplying primary power to a data center, signaling a deliberate expansion into that customer segment alongside its traditional oil and gas and midstream clientele.

Pipeline and the Path to Two Gigawatts

Kodiak reaffirmed a previously stated ambition to reach two gigawatts of power generation capacity by 2030. The company said it maintains a broader commercial pipeline of power projects and that its track record in behind-the-meter data center power supply positions it to contract additional capacity going forward.

"As we progress towards our targeted two gigawatts of power generation capacity by 2030 and advance additional commercial opportunities, we are well positioned to drive sustainable growth and create long-term value for our shareholders," McKee said. Kodiak Gas Services trades on the New York Stock Exchange under the ticker symbol KGS.