Atlas Energy Solutions Inc. (NYSE:AESI) announced it has signed a Global Framework Agreement with Caterpillar Inc. (NYSE:CAT) covering roughly 1.4 gigawatts of power generation equipment, with orders expected to be placed between 2027 and 2029.
The deal carries total purchase commitments of about $840 million over the contract period. Atlas said that with the successful rollout of these assets, it expects to own and operate around 2.0 gigawatts of power generation capacity by 2030.
The equipment package will include natural gas reciprocating generator sets, including CG260-16 stationary units intended for behind-the-meter installations and G3520 series units designed for both behind-the-meter and bridge power applications. As part of the arrangement, Atlas will provide Caterpillar with rolling demand forecasts, while Caterpillar will allocate the necessary manufacturing capacity to meet those needs.
John Turner, President and CEO of Atlas, said the agreement provides “supply certainty, pricing discipline, and execution reliability” as the company expands its power infrastructure platform. Turner pointed to growing electricity demand driven by the expansion of AI infrastructure and the reshoring of manufacturing, noting that limitations in the power grid are encouraging industrial customers to adopt private power solutions.
Atlas Energy Solutions delivers distributed power systems, oilfield logistics and proppant supply services, primarily operating in the Permian Basin. The company has also published an investor presentation titled “Long-Term Power Strategy” on its website.