Enerflex to Deliver 450 MW of Gas-Fired Units for North American Data Center Developer

Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) said on October 1, 2026, that it has won an engineered systems contract covering roughly 450 megawatts of behind-the-meter natural gas-fired power generation for a North American data center developer.

The announcement was issued from the company's headquarters in Calgary, Alberta. The award, described by the company as a major commercial win, follows a market segment Enerflex says is expanding alongside artificial intelligence and digital infrastructure development. Work on the project will run through the company's North American manufacturing operations, with deliveries slated to begin in 2027 and finish in 2028.

Manufacturing footprint and delivery schedule for the data center contract

Enerflex will design, engineer, fabricate, and assemble the approximately 450 megawatts of generation units under the scope of the Engineered Systems award. Execution is assigned to the company's North American manufacturing operations, and the delivery schedule set out in the release calls for commencement in 2027 and completion in 2028.

The company tied the award to demand for reliable, prime power that operates without a grid connection. Behind-the-meter generation, electricity produced on or near the customer's site rather than drawn from the grid, is the category under which these units fall, and the customer in this case is a developer of data centers in North America.

Services and digital solutions extend the contract's reach

According to the release, the award opens the door to additional work beyond the initial equipment scope. Enerflex identified potential future commissioning and installation activity, together with after-market services support that includes digital solutions delivered via its ReliaCore™ asset performance ecosystem. The company said these prospects align with its commercial capabilities to support full cycle requirements of behind-the-meter power generation development.

Capital program: USD 15 million in 2026 plus USD 85 million authorized for facilities

Supporting the contract and what Enerflex describes as expected growth in its core markets is a set of capital investments aimed at expanding the capabilities of the ES business line. The company's 2026 capital expenditure guidance includes approximately USD 15 million in property, plant, and equipment and infrastructure investments to support the ES business line and activity in adjacent markets, including electric power generation.

Separately, the company has authorized approximately USD 85 million of investments in its ES facilities and capabilities, the majority of which is expected to be incurred during 2027. Enerflex stated that these investments, combined with ongoing initiatives to enhance collaboration, leverage scale, improve operational efficiency, and solidify capabilities, are expected to significantly increase the revenue capacity of its ES business line. The company indicated it expects to provide further updates regarding its 2026 capital program when it releases its third-quarter 2026 financial and operational results.

CEO comments on integrated delivery and a pipeline exceeding 2 GW

Paul Mahoney, Enerflex's President and Chief Executive Officer, addressed the award in the release. "This award leverages Enerflex's unique capabilities in providing an integrated design, engineering, full scale fabrication, and project execution solution for behind-the-meter power generation projects," he said, adding that "the demand for reliable, prime power that does not require grid connection, supporting Artificial Intelligence and digital infrastructure development continues to grow."

Mahoney also noted that "building on more than four decades of power generation experience, Enerflex is well positioned to execute a wide range of power generation projects and convert our opportunity pipeline, that continues to exceed 2 GW, into meaningful commercial awards." The remarks frame the contract as evidence of the company's ability to deliver an end-to-end solution, from design and engineering through full-scale fabrication and project executionfor customers needing generation independent of grid connection. The reference to a pipeline exceeding 2 gigawatts indicates the scale of prospective work the company says it is tracking beyond this award.

Where the award fits in the broader power market

Enerflex positions the contract within a trend it identifies in the release: growing demand for reliable, prime power that does not require grid connection, driven by artificial intelligence and digital infrastructure development.

The approximately 450 megawatts of natural gas-fired units for the data center developer sit squarely in the behind-the-meter category, in which generation is produced on or near the customer's site rather than drawn from the grid. With the delivery window spanning 2027 and 2028 and capital investments of roughly USD 15 million in 2026 plus approximately $85 million authorized with the majority expected in 2027, Enerflex has linked the contract directly to a multi-year buildout of its Engineered Systems business.

The company states it has more than four decades of power generation experience and an opportunity pipeline that continues to exceed 2 GW, which management says it aims to convert into further meaningful commercial awards. Further detail on the 2026 capital program is expected alongside the company's Q3/26 financial and operational results.