Calgary-based energy infrastructure company Enerflex has won a contract to supply 450 megawatts of natural gas power generation for a North American data center developer.
Under the terms of the deal, Enerflex will design, engineer and build behind-the-meter natural gas-fired power generation units across its North American manufacturing facilities, with deliveries scheduled between 2027 and 2028.
The award comes as big tech companies race to build out digital infrastructure across the U.S. to support surging demand for artificial intelligence and cloud computing needs. As a result, to avoid critical bottlenecks many companies are seeking to bypass local electrical utility grids and regional transmission interconnections to supply their own power needs.
To support its new contract and to tap into the broader demand trend, Enerflex, which provides modular natural gas, power and treated water technology solutions, on Thursday said it is investing in expanding the capabilities of its Engineered Systems segment.
Included in the company's guidance for 2026 is about $15 million for its property, plant and equipment and infrastructure to support the company's Engineered Systems business line and activity in adjacent markets, including electric power generation.
Enerflex has plans to invest about $85 million toward its Engineered Systems facilities, largely toward enhancing collaboration, leveraging scale, improving operational efficiency and to solidify capabilities, it said, which are expected to increase revenue in its Engineered Systems segment.
"Enerflex is well positioned to execute a wide range of power generation projects and convert our opportunity pipeline, that continues to exceed 2 GW, into meaningful commercial awards," Chief Executive Paul Mahoney said.