INNIO wins additional 620-megawatt order for U.S. data centers
Key Facts
INNIO announced in October that it had received an additional order for 620 megawatts of power generation capacity from a U.S. developer and operator of hyperscale data center campuses, expanding its relationship with the customer. The company said in its statement that the order brings the total capacity ordered by the customer to about 1.72 gigawatts. It booked the additional equipment order in September 2026, ahead of the announcement. It did not disclose the customer's name, citing standard confidentiality practices in the data center industry. The entire order will use containerized Jenbacher J624 solutions. According to INNIO, the design allows equipment installation procedures to be standardized and deployment at sites to be accelerated. The order comes as the company says power infrastructure constraints are driving data center developers to seek off-grid power generation alternatives.
INNIO had announced a previous 1.1-gigawatt order from the same customer in July, booked in the second quarter of fiscal 2026. It said equipment deliveries for that order were scheduled in phases, providing revenue visibility over several years. The earlier order includes more than 200 Jenbacher engines of the same model used in the additional order. These engines are expected to provide behind-the-meter baseload power generation, within the customer's own system. Under this arrangement, the generating equipment forms part of the power supply system for the data center campuses. Commenting on the earlier order, Chief Executive Olaf Berlien described the company's solutions as "rapidly deployable power generation solutions that deliver fuel efficiency, reliability and sustainability." He said their performance supports intensive workloads associated with artificial intelligence.
Alongside the new equipment order, the customer signed a long-term comprehensive maintenance agreement covering the first 500 megawatts of previously ordered capacity. The agreement ties maintenance services to equipment from the earlier order, as part of the continuing relationship between the company and the data center operator. INNIO said the contract covers "all spare parts and maintenance work through the major overhaul." It added that the agreement expands recurring service revenue throughout the equipment lifecycle, alongside its engine supply business. Service revenue reached $368.4 million in the second quarter of 2026, according to the company's reported financial results. That represented a 21% increase from the same quarter a year earlier. INNIO attributed revenue growth in the business to long-term service agreements, the category that includes the maintenance agreement announced alongside the additional order.
In its equipment business, INNIO's order backlog stood at $6.6 billion at the end of the second quarter of 2026, according to its financial results statement. The backlog rose 279% year on year compared with the same period a year earlier. That balance reflects the end of the quarter in which the company booked the customer's earlier order, before booking the additional order in September. In the same month, INNIO announced another order for 450 megawatts from a U.S. energy company to supply power to data centers. That represents another contract in the data center power supply market, alongside the U.S. developer and operator's cumulative orders. When announcing the energy company deal, INNIO said data center developers were seeking off-grid alternatives in response to power infrastructure constraints.
Estimates from Lawrence Berkeley National Laboratory place these contracts in the context of growing electricity needs at U.S. data centers. The laboratory's report, published through the U.S. Department of Energy, estimated their electricity consumption at about 192 terawatt-hours in 2024. That was equivalent to 4.7% of total U.S. electricity consumption in the same year. The report's reference scenario projects U.S. data center consumption rising to 649 terawatt-hours in 2030. As for contract execution, INNIO expects to deliver the engines ordered by the U.S. energy company by 2028. Before then, the company is scheduled to report its third-quarter 2026 results on October 27, 2026, before the market opens.