Atlas Energy Solutions, a former proppant supplier for the oil and gas industry, has secured two cost reimbursement agreements with an unnamed frontier AI lab. The deals are valued at approximately $613.5 million and focus on providing behind-the-meter power generation for data centers.
The contracts include the supply of 283 MW of Caterpillar natural gas generators and balance-of-plant infrastructure. An additional 328 MW commitment, established under a previous agreement with Caterpillar, is scheduled for delivery in 2027, bringing the total capacity to 611 MW.
Following the announcement on September 25, 2026, the company's stock rose by as much as 19%, reaching an intraday peak of approximately $13.13. The cost reimbursement structure allows the AI lab to fund equipment purchases, reducing financial pressure on Atlas.
CEO John Turner described these agreements as a step toward securing long-term power purchase agreements. The company previously signed a 120 MW power purchase agreement earlier in 2026 and aims for multi-gigawatt capacity expansion by 2027 through its partnership with Caterpillar.
