Enerflex Wins Contract for More Than 1 Gigawatt of Power Generation for North American Data Center
Key Facts
Enerflex announced a contract to supply more than 1 gigawatt of behind-the-meter natural gas power generation units for a large data center project in North America. The company said in a statement that its scope of work includes designing, engineering, manufacturing and assembling the units to meet the project's power needs. Including the new contract and additional contracts, the backlog for this specialized natural gas power generation business exceeded 1.75 gigawatts, according to the statement. The company's North American manufacturing operations will execute the projects, linking the new orders to its industrial capacity in the same region. The deal comes amid growing demand for reliable primary power solutions, which Chief Executive Paul Mahoney linked to the expansion of artificial intelligence and digital infrastructure.
To support order execution and anticipated growth, Enerflex approved about $100 million in investment to expand its Engineered Systems facilities and capacity, according to the statement announcing the new contract. The investment program covers the business's facilities and capacity, which the company aims to expand alongside project execution. Under its earlier expansion plan, Enerflex had announced approval of about $85 million in additional investment in Engineered Systems facilities and capacity. That earlier announcement was linked to a contract win to supply approximately 450 megawatts of behind-the-meter natural gas power generation units. The earlier contract was for a North American data center developer, marking a succession of power generation equipment orders from the region's data center sector.
Mahoney attributed growing demand for reliable primary power solutions to the needs of digital expansion, pointing to their role in "supporting artificial intelligence and the development of digital infrastructure." The units ordered under the new contract are part of its behind-the-meter natural gas generation solutions and are designated for a large data center project in this deal. In the earlier contract announcement, Enerflex management said the pipeline of potential power generation business opportunities remained above 2 gigawatts. That figure described potential business opportunities the company was pursuing at the time, while the 450 megawatts referred to the units covered by the contract announced then. The company's disclosures when the earlier deal was announced thus included a contracted order from a data center developer, alongside additional potential opportunities in power generation.
On financial performance, Enerflex's revenue totaled about US$582 million in the second quarter of 2026, according to the company's earnings statement for the period. Revenue was below US$615 million in the corresponding quarter of 2025 and US$584 million in the first quarter of 2026. The company attributed the year-on-year decline primarily to project execution timing, which affects the sequencing of work across financial periods. It also attributed the decline to the allocation of resources to expand its U.S. contract gas compression fleet. At the end of the second quarter, the Engineered Systems backlog stood at about US$1.5 billion, according to the same financial disclosure.
Alongside its data center contracts and manufacturing plans, Enerflex completed the sale of most of its Asia-Pacific operations to INNIO Group, according to a separate company statement. The businesses included in the sale focused primarily on aftermarket services in the region. Management said the divestment allows the company to increase its focus on core regions, including North America, where the contracted data center projects are located. The core regions identified by management also include Latin America, under the geographic strategy it outlined after completing the sale. The company also listed the Middle East among its core areas of focus as it redirects its attention following the divestment of most of its Asia-Pacific operations.
According to the execution schedule announced by Enerflex, deliveries under the behind-the-meter power generation backlog extend through 2028. The earlier contract, for about 450 megawatts for a North American data center developer, has a delivery schedule beginning in 2027. Delivery of the units covered by that contract is scheduled to be completed in 2028, according to the statement on the earlier deal. On financial disclosures, Enerflex set Thursday, October 29, 2026, for the announcement of its third-quarter results. The results will be released before the market opens, according to the timing the company confirmed in its statement on completing the sale of most of its Asia-Pacific operations.