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Kodiak, Baker Hughes Strike Gas Turbine Deal to Power US Data Center Boom

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Kodiak Gas Services (KGS) and Baker Hughes (BKR) have agreed to a multi-year deal to supply gas-turbine power-generation equipment to meet surging electricity demand from US data centers and other energy-intensive infrastructure projects, the companies said on Wednesday.

The agreement creates a framework for deploying up to 1.8 gigawatts of power generation capacity, with an initial order covering about 1 GW of gas turbines and generators, scheduled for delivery by 2030.

Kodiak, a provider of energy infrastructure services, said it will use Baker Hughes' power generation portfolio to expand its distributed power capabilities and support customers seeking reliable electricity supplies.

The initial equipment award includes Baker Hughes' NovaLT16 and Frame 5 gas turbines, along with BRUSH Power Generation generators, which will provide the core technology for planned projects.

The agreement is structured as a multi-year rolling arrangement, allowing capacity commitments to be adjusted based on data center demand, project timelines and infrastructure requirements.

Kodiak Gas and Baker Hughes also plan to collaborate on technical training, spare parts availability and potential long-term service agreements for the equipment.

Baker Hughes said its gas turbine and generator technologies would help customers bring new generating capacity online more quickly to meet accelerating demand from digital infrastructure.

The deal comes as soaring electricity demand from artificial intelligence and data centers is driving investment in gas-fired generation, particularly in regions where grid constraints are delaying new power connections.

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