By Avi Salzman

Newly-listed power company ERock could appeal to investors looking for another way to play the AI boom.

Erock started trading on the New York Stock Exchange around midday on Wednesday, slipping 5% in early action. The Houston-based company raised $600 million in its initial public offering late Tuesday at $21.50 a share, valuing the company at $5.9 billion.

ERock makes natural gas-powered engines and generators that can be placed on-site at data centers or other large businesses to provide electricity. Its "rockblock" generators are made in factories and transported to their destination, where they can be assembled Lego-like into power systems of various sizes. Its customers include Meta Platforms, Microsoft, and Foxconn.

They can be used as backup power, or temporary power solutions as data centers wait to be connected to the larger electrical grid. Given the yearslong waiting times to be connected in states like Texas and Pennsylvania, these kinds of systems have become increasingly popular at data centers. Other companies providing these kinds of portable power systems include Caterpillar, Generac, and Cummins.

ERock CEO John Carrington said in an interview with Barron's that its systems are designed to be quieter and to produce lower emissions than standard diesel and gas generators, potentially making them more palatable to communities that have worried about those issues.

ERock's valuation looks lofty given its latest annual results. It reported a $59 million loss on $183 million in revenue in 2025 -- meaning its stock is trading at 32 times its latest annual sales at the IPO price. Caterpillar, by contrast, trades at six times its 2025 sales.

In the first quarter of this year, ERock reported a $17 million loss on $32 million in revenue. But Carrington said that growth will ramp soon. The company says its backlog was worth $1.3 billion as of March 31. Carrington says ERock will be able to produce 1.2 gigawatts worth of engines and generators annually by the end of this year -- more than its entire current installed base of about one gigawatt.

"The growth is exceptional," Carrington said. "We're incredibly well-positioned."

Write to Avi Salzman at avi.salzman@barrons.com

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June 10, 2026 13:37 ET (17:37 GMT)

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