Enerflex wins 450 MW data centre power contract in North America
Enerflex, the Calgary-based modular power and natural gas technology company, has secured a major Engineered Systems contract to design, engineer, fabricate, and assemble approximately 450 megawatts of behind-the-meter natural gas-fired power generation equipment for a North American data centre developer. Deliveries are scheduled to commence in 2027 and complete in 2028.
The contract is one of the larger publicly announced behind-the-meter power awards tied to data centre growth. Enerflex did not name the customer, disclose the contract value, or specify the number of generation units involved.
The deal
Paul Mahoney, president and chief executive of Enerflex, said the award draws on the company's integrated capability across design, engineering, fabrication, and project execution. "The demand for reliable, prime power that does not require grid connection, supporting Artificial Intelligence and digital infrastructure development continues to grow," he said. Mahoney also noted that the company's opportunity pipeline "continues to exceed 2 GW," suggesting a broader pipeline of similar awards is being pursued.
Beyond the initial equipment scope, Enerflex says the contract creates openings for commissioning, installation, and after-market services delivered through its ReliaCore asset performance platform.
To support this and anticipated follow-on activity, Enerflex has authorised approximately $85 million in investment in its Engineered Systems facilities and capabilities, the majority expected to be spent in 2027. A further $15 million is already included in its 2026 capital expenditure guidance for property, plant, and equipment upgrades. The company says these investments are intended to substantially increase the revenue capacity of its Engineered Systems business line.
Market context
Behind-the-meter power has become one of the fastest-growing sub-sectors of data centre infrastructure as hyperscalers and colocation operators seek to bypass constrained electricity grids and secure dedicated generation capacity. Natural gas reciprocating engines and gas turbines have emerged as the default technology for large-scale behind-the-meter installations, given their fast-start characteristics and the relative availability of gas supply in North American markets.
The trend reflects a structural challenge: grid connection timelines in many US and Canadian regions now stretch to several years, driven by surging demand from AI training and inference workloads alongside the electrification of transport and industrial processes. Behind-the-meter solutions allow data centre operators to bring capacity online faster, though they introduce their own supply-chain and regulatory complexities.
Enerflex competes in this space against specialist power-generation engineering, procurement, and construction firms, as well as the in-house project teams of the largest hyperscalers. Its claimed differentiator is vertical integration across design, fabrication, and lifecycle services, backed by more than four decades of gas-engine experience.
Regulatory and sustainability considerations
Natural gas-fired data centre power is not without controversy. Regulators in several US states and the EU are tightening emissions rules for backup and prime-power generation, and environmental groups have challenged data centre gas-power projects on air quality grounds. The US Environmental Protection Agency's proposed updates to new source performance standards for stationary combustion turbines may affect permitting timelines for large installations. The unnamed customer will need to navigate these frameworks as the project progresses toward its 2027 delivery window.
Enerflex frames its longer-term positioning around what it calls a "Transforming Energy for a Sustainable Future" strategy, though it did not provide emissions intensity figures or carbon-abatement commitments in connection with this contract. Investors will be watching for further details on the customer identity, contract value, and project margin profile when the company reports its third-quarter 2026 results.