Inside Baker Hughes & Kodiak's 1.8GW Power Strategy

Across the US, developers are grappling with grid connection delays that threaten to slow the rollout of new digital infrastructure.

As a result, behind-the-meter power generation is becoming a part of the industry's strategy that is more commonly adopted.

The method allows operators to sidestep congested electricity networks and bring new capacity online more quickly.

It's against this backdrop that Baker Hughes and Kodiak Gas Services have signed a multi-year strategic agreement that could eventually support up to 1.8GW of new power generation for US data centres.

The deal is beginning with an initial equipment award expected to provide around 1GW of generating capacity by 2030. The broader framework will then provide up to 1.8GW of power over time.

Tackling the power bottleneck

Unlike conventional electricity supplied through the transmission network, the agreement focuses on behind-the-meter generation, where power is produced directly at or near a customer's site.

This offers a practical solution to one of the industry's biggest constraints.

By generating electricity on-site, developers can reduce reliance on overstretched grids and accelerate the delivery of new computing capacity.

The initial deployment includes Baker Hughes' NovaLT16 gas turbines, larger Frame 5 gas turbines and BRUSH generators.

Together, the technologies are designed to provide continuous electricity for large-scale data centres and other energy infrastructure projects.

While gas turbines are powered by fossil fuel, their modern designs can be deployed considerably faster than many large centralised power stations while offering high levels of efficiency.

As grid connection queues continue to grow, they are becoming a more appealing option for developers seeking reliable, dispatchable power.

The companies say the first systems will be deployed in key US markets where electricity demand is rising and transmission constraints are limiting new infrastructure projects.

Meeting AI-driven demand

The agreement reflects a wider trend across the data centre sector as operators look beyond traditional utility connections to secure dependable electricity supplies.

AI workloads require facilities capable of operating continuously, placing greater pressure on power infrastructure than ever before.

Mickey McKee, President and CEO of Kodiak, says the partnership strengthens the company's ability to meet those demands.

"We are excited to embark on our relationship with Baker Hughes through this strategic agreement.

"Our customers require dependable, efficient and rapidly deployable power solutions, and access to Baker Hughes' industry-leading technology, training and support enhances our ability to meet that demand at scale.

"This framework supports our long-term strategy of expanding Kodiak's energy infrastructure capabilities while delivering exceptional reliability and value to our customers."

For Baker Hughes, the agreement reflects how the pace of data centre expansion is changing expectations for new power infrastructure.

Lorenzo Simonelli, Chairman and CEO of Baker Hughes, says: "As demand for power continues to accelerate, driven by the rapid expansion of digital infrastructure and data centres, the ability to deliver reliable, efficient and scalable power solutions quickly is critical.

"This agreement reflects the growing need for flexible power generation technologies.

"Together, our gas turbines and generator technologies will help customers bring new capacity online faster to support the continued buildout of critical digital and energy infrastructure."

More than an equipment agreement

The partnership creates a long-term commercial framework that allows turbine orders to be aligned with evolving data centre construction schedules.

While the agreement is equipment-based, it also covers technical training, spare parts support and plans for a long-term service arrangement, ensuring operators have ongoing support as additional generating capacity is deployed.

For Baker Hughes and Kodiak, the agreement combines behind-the-meter gas generation with technical expertise to help operators bring new facilities online without waiting for grid infrastructure to catch up.