Story
Enerflex Shares Surge After Securing 450 MW Data Center Power Contract
Shares of Enerflex Ltd. (NYSE:EFXT) jumped 11% in premarket trading on Thursday after the company announced it had secured a significant contract to supply a North American data center developer with approximately 450 megawatts (MW) of natural gas-fired power generation.
Project and Investment Details
Under the terms of the agreement, Enerflex will design, engineer, fabricate, and assemble behind-the-meter power generation units at its North American facilities. The company stated that deliveries are scheduled to begin in 2027 and conclude in 2028.
To support the contract and anticipated future growth, Enerflex is expanding its Engineered Systems (ES) business. The company's 2026 capital expenditure guidance includes about $15 million for its ES business and electric power generation activities. Furthermore, Enerflex has authorized an additional $85 million in investments for its ES facilities, with the majority of the spending expected in 2027.
AdMarket Context and Outlook
The contract highlights the increasing demand for reliable, independent power sources to support the rapid expansion of artificial intelligence and digital infrastructure. Paul Mahoney, Enerflex's President and CEO, noted that the deal leverages the company's integrated capabilities for such projects.
Mahoney added that the demand for prime power that does not require a grid connection is growing, and the company's opportunity pipeline now exceeds 2 gigawatts (GW). The agreement also opens the door for future revenue from commissioning, installation, and long-term after-market services for the power units.
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