Kodiak Gas Services and Baker Hughes strike 1.8 GW power deal

Kodiak Gas Services (NYSE: KGS) and Baker Hughes (NASDAQ: BKR) announced a multi-year strategic agreement under which Baker Hughes will supply gas turbines and generators to support Kodiak's energy infrastructure expansion in the United States.

The agreement establishes a framework for up to 1.8 gigawatts (GW) of power generation capacity over time. An initial equipment award covers approximately 1 GW of capacity to be delivered by 2030. The initial order includes NovaLT16 gas turbines, Frame 5 gas turbines, and BRUSH Power Generation generators.

The equipment is intended to support behind-the-meter power projects in U.S. markets where electricity demand and grid constraints are driving the need for additional power infrastructure, particularly for data centers.

The agreement includes provisions for technical training, spare parts supply, and a framework for a long-term services arrangement. The companies said the structure is designed to reduce lead times and align capacity commitments with phased project development schedules.

Kodiak President and CEO Mickey McKee said the agreement enhances the company's ability to meet customer demand at scale. Baker Hughes Chairman and CEO Lorenzo Simonelli said the deal reflects growing need for flexible power generation technologies to support digital infrastructure buildout.

Kodiak is headquartered in The Woodlands, Texas, and provides contract compression, distributed power, and energy infrastructure services. Baker Hughes operates in over 120 countries and is headquartered in London.

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