Enerflex Lands Gigawatt-Scale Contract to Power Data Centres

Enerflex has won a contract for more than one gigawatt of data centre power equipment. Its growing backlog strengthens exposure to AI infrastructure, while manufacturing expansion puts execution and cash flow in focus.

The infrastructure supporting AI is generating sizeable orders for Enerflex.

The NYSE-listed equipment supplier announced a contract on Tuesday to design and manufacture more than one gigawatt of natural gas power generation equipment for a large North American data centre development.

The award takes its backlog for natural gas power generated directly at customer sites above 1.75 gigawatts, with deliveries extending through 2028.

Building the capacity to deliver

These systems provide electricity without requiring a connection to the power grid, giving data centre developers another route to securing supply.

Enerflex has authorised approximately $100 million in investment to expand its Engineered Systems facilities and capabilities. Around $15 million is included in its 2026 capital expenditure guidance.

Management also sees potential for installation, maintenance and digital services beyond the initial equipment orders. However, the announcement did not disclose the new contract’s dollar value.

Investor Take: The award strengthens Enerflex’s exposure to data centre power demand and provides work stretching over several years. The financial payoff will depend on delivery schedules, manufacturing costs and project margins. Watch whether the expanding backlog produces stronger cash flow as the company invests in capacity. Follow-on service contracts could provide additional revenue, but those opportunities still need to become commercial agreements.