en.Wedoany.com Reported - Baker Hughes has signed a multi-year strategic agreement with Kodiak Gas Services, centered on gas turbine technology, which could ultimately provide up to 1.8 gigawatts of new power generation capacity for U.S. data centers. Upon commencement, the two companies plan to achieve approximately 1 GW of generation capacity by 2030, with the framework designed to meet the long-term electricity demand driven by the continued growth of digital infrastructure.
These gas turbines will be used for behind-the-meter installations, meaning electricity is produced directly at or near the customer's site, rather than drawn from the public grid. For data centers, this approach reduces reliance on an increasingly congested grid while enabling new computing capacity to come online faster.
The initial order includes Baker Hughes' NovaLT16 gas turbines, Frame 5 gas turbines, and BRUSH generators. Combined, these units can provide continuous power for large-scale computing facilities and other energy infrastructure projects. Gas turbines generate electricity by burning natural gas to drive a rotating turbine, which in turn powers a generator. Although a fossil fuel technology, modern gas turbines are highly efficient and can be deployed much faster than many large, centralized power plants, making them an option for developers facing lengthy grid interconnection queues.
The two companies stated that the equipment will be deployed in key U.S. markets, where interest in flexible, rapidly deployable power generation technologies is increasing due to rising electricity demand and grid constraints. This announcement reflects a trend in the energy sector, as technology companies seek new ways to secure power for their increasingly electricity-intensive data centers. In particular, artificial intelligence applications require vast computing resources, driving demand for facilities that can operate reliably around the clock.
Mickey McKee, President and CEO of Kodiak, stated that the agreement will enhance the company's ability to meet these requirements. He believes customers need reliable, efficient, and rapidly deployable power solutions, and gaining access to Baker Hughes' technology, training, and support strengthens the company's capacity to meet this demand at scale. The framework supports Kodiak's long-term strategy to expand its energy infrastructure capabilities while delivering reliability and value to customers.
Lorenzo Simonelli, Chairman and CEO of Baker Hughes, stated that data center development is changing expectations for the delivery speed of new power generation assets. He noted that the rapid expansion of digital infrastructure and data centers continues to accelerate electricity demand, making the ability to quickly provide reliable, efficient, and scalable power solutions critical. This agreement reflects the growing demand for flexible power generation technologies. Gas turbine and generator technologies will together help customers bring new capacity online faster to support the ongoing construction of critical digital and energy infrastructure.
The agreement is not merely an equipment procurement but establishes a rolling commercial framework that allows turbine orders to align with changing data center construction schedules, rather than committing to the full capacity upfront. The partnership also includes commitments to technical training, spare parts support, and long-term service arrangements. This announcement highlights how the rapid growth of digital infrastructure is creating new demand for dispatchable power generation that can be installed quickly. While renewable energy continues to expand, agreements like this underscore the expected larger role of gas-fired power in bridging the gap between rising electricity demand and slow grid expansion.
