Shares of Enerflex rose sharply after the energy infrastructure company secured a contract to engineer and assemble natural gas-fired generators for a North American data center developer.

The name of the developer and the terms of the deal were not disclosed.

Enerflex will generate 450 megawatts for the developer, with deliveries to begin next year and end in 2028.

U.S. shares of the Calgary-based company advanced 12% to $25.50, with the stock on pace for its largest single-day gain since Feb. 26. Shares also trade on the Toronto Stock Exchange.

Enerflex said it plans to invest $15 million in 2026 and an additional $85 million in 2027 to upgrade facilities and scale up manufacturing capacity.

It's no secret that demand for data center infrastructure isn't slowing down. That's driven electricity demand off the charts and beyond grid capacity, creating multiyear delays for utility interconnection.

Enerflex's work aims to address that problem. Its behind-the-meter power deployment, or the energy storage system located on the data center's side of the utility electric meter, will allow that developer to bypass delays to get computing capacity online quicker. In other words, this would allow the data center to generate its own electricity on-site as opposed to relying on local utility companies.

The company has historically been known for its traditional oil and gas infrastructure, but it's expanding into natural gas-fired power generation to fuel the booming demand for AI infrastructure. That strategic pivot began early this year, when the company secured its first contract to deliver behind-the-meter power generation for a data center project.

The shift seems to be working. Shares have risen 68% and are on pace to have their best year since 2024, according to Dow Jones Market Data.