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Enerflex and Data Centers: How 1.5 GW Pipeline Sets Up 2027
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Key Takeaways
EFXT secured a U.S. data center power-unit order, finished a FEED study, and signed 2 contracts.
EFXT's pipeline tops 1.5 GW, but many projects may start in 2027 due to shortages of big engines.
EFXT is steering capital to contracted, reliable clients, moving from design to supply and long-term service.
Enerflex Ltd.’s (EFXT - Free Report) move into data center power generation is now taking shape in a more practical way. The company has already secured an order to supply power units for a large U.S. data center project, completed a front-end engineering and design (FEED) study for another major project, and signed contracts with two North American customers. This indicates that the energy infrastructure and power generation company is building a steady pipeline of projects that can progress from design to equipment supply and, eventually, long-term service agreements.
Enerflex has a large number of potential projects in the pipeline, totaling over 1.5 gigawatts of power capacity. However, many of these projects will likely start from 2027 because there is currently a shortage of bigger engines needed for such work. The company has already secured most of the engines it needs for 2026 and has planned ahead to lock in some supply early. The long waiting time of about 110 to 120 weeks mainly applies to certain large, high-power engines, not all types of equipment.
Enerflex’s approach stands out for its focus on disciplined execution and reliable customers. The company is directing growth capital toward projects with clear contracts and strong counterparties. Its Engineered Systems segment also helps support future infrastructure buildouts and recurring service revenues. This is important as rising data center power demand aligns with stronger compression demand in key regions like the Permian and Haynesville, creating multiple opportunities to expand customer relationships over time.
Other Energy Companies Moving Into Data Center Power Generation
Integrated energy major ExxonMobil (XOM - Free Report) is supporting data center power needs through cleaner energy and efficiency solutions. ExxonMobil is partnering with NextEra to develop natural gas plants with carbon capture to supply power to data centers. ExxonMobil is also working with Infosys to provide advanced cooling fluids that improve energy efficiency in AI-driven facilities. Through these efforts, ExxonMobil is helping data centers secure reliable power while lowering emissions and managing rising energy demand.
Meanwhile, smaller rival Chevron (CVX - Free Report) is actively expanding into data center power generation through large-scale natural gas projects. Chevron is in talks with Microsoft to supply electricity from a planned plant in West Texas, designed to support AI-driven data centers. Chevron aims to begin operations by 2027, using Permian Basin gas to power the facility. Chevron’s “behind-the-meter” model allows direct, reliable energy supply to data centers, reducing dependence on the grid and strengthening its role in this fast-growing market.
The Zacks Rundown on EFXT
Shares of Enerflex have gained 75% over the past six months.
Image Source: Zacks Investment Research
EFXT currently has an average brokerage recommendation (ABR) of 1.72 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Enerflex’s earnings has been revised over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Enerflex and Data Centers: How 1.5 GW Pipeline Sets Up 2027
Key Takeaways
Enerflex Ltd.’s (EFXT - Free Report) move into data center power generation is now taking shape in a more practical way. The company has already secured an order to supply power units for a large U.S. data center project, completed a front-end engineering and design (FEED) study for another major project, and signed contracts with two North American customers. This indicates that the energy infrastructure and power generation company is building a steady pipeline of projects that can progress from design to equipment supply and, eventually, long-term service agreements.
Enerflex has a large number of potential projects in the pipeline, totaling over 1.5 gigawatts of power capacity. However, many of these projects will likely start from 2027 because there is currently a shortage of bigger engines needed for such work. The company has already secured most of the engines it needs for 2026 and has planned ahead to lock in some supply early. The long waiting time of about 110 to 120 weeks mainly applies to certain large, high-power engines, not all types of equipment.
Enerflex’s approach stands out for its focus on disciplined execution and reliable customers. The company is directing growth capital toward projects with clear contracts and strong counterparties. Its Engineered Systems segment also helps support future infrastructure buildouts and recurring service revenues. This is important as rising data center power demand aligns with stronger compression demand in key regions like the Permian and Haynesville, creating multiple opportunities to expand customer relationships over time.
Other Energy Companies Moving Into Data Center Power Generation
Integrated energy major ExxonMobil (XOM - Free Report) is supporting data center power needs through cleaner energy and efficiency solutions. ExxonMobil is partnering with NextEra to develop natural gas plants with carbon capture to supply power to data centers. ExxonMobil is also working with Infosys to provide advanced cooling fluids that improve energy efficiency in AI-driven facilities. Through these efforts, ExxonMobil is helping data centers secure reliable power while lowering emissions and managing rising energy demand.
Meanwhile, smaller rival Chevron (CVX - Free Report) is actively expanding into data center power generation through large-scale natural gas projects. Chevron is in talks with Microsoft to supply electricity from a planned plant in West Texas, designed to support AI-driven data centers. Chevron aims to begin operations by 2027, using Permian Basin gas to power the facility. Chevron’s “behind-the-meter” model allows direct, reliable energy supply to data centers, reducing dependence on the grid and strengthening its role in this fast-growing market.
The Zacks Rundown on EFXT
Shares of Enerflex have gained 75% over the past six months.
EFXT currently has an average brokerage recommendation (ABR) of 1.72 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms.
See how the Zacks Consensus Estimate for Enerflex’s earnings has been revised over the past 60 days.
The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.