Kodiak Gas Services Announces Power Supply Agreement with West Texas Data Center

Kodiak signs a six-year, 76 MW data center power deal, expanding its long-term contract base and supporting its 2030 capacity growth target.

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THE WOODLANDS, Texas--(BUSINESS WIRE)-- Kodiak Gas Services, Inc. (NYSE: KGS) (“Kodiak”) today announced that it has entered into an agreement to provide 76 megawatts of behind-the-meter, baseload power capacity, including balance of plant, to a West Texas data center for a term of six years.

Under the terms of the agreement, Kodiak will deploy approximately 40 reciprocating natural gas-fueled generation units to a data center operator that is contracted with an investment-grade-rated hyperscaler and has a GPU designer as guarantor of the data center lease. Deployment of the power assets is expected to begin in the fourth quarter of 2026 and scale into the first quarter of 2027 with revenue recognition anticipated to start in the first quarter of 2027.

“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,” said Mickey McKee, Kodiak’s President and Chief Executive Officer. “This represents Kodiak’s second long-term contract to supply primary power to a data center. Approximately half of our current power portfolio is now under long-term power contracts.”

“We have a robust commercial pipeline of power projects, which, combined with our demonstrated track record of operational performance in supplying behind-the-meter power to data centers, provides a clear path toward contracting additional power capacity. 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.”

About Kodiak

Kodiak is a leading contract compression, distributed power, and energy infrastructure services provider in the United States. Headquartered in The Woodlands, Texas, Kodiak partners with customers across the energy and digital infrastructure sectors, including oil and gas producers, midstream operators, and data center developers and operators, to deliver safe, reliable, and innovative infrastructure solutions. Additional information is available at www.kodiakgas.com.

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. A list and description of risks, uncertainties and other factors can be found in the Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and filed with the SEC on February 26, 2026 and any updates to those factors set forth in our subsequent quarterly reports on Form 10-Q or current reports on Form 8-K. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260921361873/en/

Graham Sones, VP of Investor Relations
ir@kodiakgas.com
(936) 755-3259

Source: Kodiak Gas Services, Inc.

Key Terms

behind-the-meter technical

Equipment or systems located on a customer’s side of the electricity meter—such as rooftop solar panels, battery storage, electric vehicle chargers, or energy controls—that generate, store, or manage power for use on-site rather than being supplied through the utility’s grid. Investors care because behind-the-meter assets change how much power a customer buys, can create new revenue or savings streams, affect demand patterns, and shift regulatory or business models in the energy market, much like a homeowner installing their own water tank reduces municipal supply needs.

baseload technical

Baseload is the minimum, steady level of electricity demand or supply that exists over a typical day or season, like the baseline heartbeat of the power grid. Investors care because assets that reliably meet baseload — such as certain power plants or long-term contracts — provide predictable revenue and lower risk, while shortfalls or oversupply at this level can drive price swings and affect valuations.

balance of plant technical

Balance of plant are the supporting parts of an energy project—things like wiring, pipes, transformers, control systems, roads and cooling equipment—that are not the main power-producing machines. For investors it matters because these components drive construction cost, schedule and ongoing reliability much like the foundation, plumbing and wiring matter for a house; problems or cost overruns here can delay projects or erode returns.

investment-grade-rated financial

A debt security or issuer described as investment-grade-rated has been evaluated by a recognized credit rating agency and placed in the agency’s higher-quality categories (typically the lowest investment-grade notch is around BBB- on S&P/Fitch or Baa3 on Moody’s). It signals that the agency judges the borrower’s ability to meet interest and principal payments as relatively strong, which affects borrowing costs, which investors and funds can hold it, and perceived default risk—like a borrower with a solid credit score versus a riskier one.