When looking for artificial intelligence (AI) winners, Calgary-based energy sector veterans don’t usually top the list. Yet, Enerflex (TSX: EFX) stock has recently shown some surprising exposure to the AI value chain in 2026, a development that may extend the stock’s 300% gain over the past three years.
While most Canadian investors hunt for AI upside in expensive tech stocks and chipmakers, Enerflex reveals a far more lucrative data centre construction bottleneck: electricity. Hyperscale data centres face massive power grid delays, and Enerflex is using its three decades of industrial power generation expertise to supply direct, off-grid natural gas, electricity, and specialized cooling systems. With a massive 7-gigawatt (GW) opportunity pipeline and a valuation trading at a steep discount, this traditional energy infrastructure player offers unexpected AI tailwinds at a bargain price.
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The AI grid crunch meets Enerflex’s 30 years of expertise
In early 2026, Enerflex secured a landmark order to supply custom power generation units for a major U.S. data centre project. With annual data centre capital expenditures projected to top US$300 billion through 2030, Enerflex estimates a US$15 billion addressable market specifically for its reciprocating gas engine power blocks.
Founded in 1980, Enerflex historically made its mark engineering and manufacturing natural gas compression and processing equipment. But the AI boom demands an unprecedented amount of 24/7 baseload power that electrical grids simply cannot deliver quickly enough.
Enerflex’s electric power generation segment has solutions that meet data centre builders’ electricity needs. Capitalizing on 30 years of industrial power design, the company is expanding rapidly into energizing mission-critical digital infrastructure.
Solving the hyperscaler power and cooling dilemma
Data centre power generation is now an explicit pillar of Enerflex’s growth strategy. On its second-quarter 2026 earnings call, management revealed that its distributed power pipeline expanded beyond 7 GW across data centre and power applications, with commercial teams actively negotiating the top 2 GW directly with hyperscalers and prime power developers seeking off-grid, behind-the-meter fixes.
What makes Enerflex’s offering unique for data centres is twofold. Firstly, Enerflex builds combined cooling, heating, and power (CCHP) systems that capture engine exhaust heat and convert it into chilled water via absorption chillers, delivering continuous 24/7 power and cooling in a single package. Secondly, while data centres traditionally relied on diesel generators for backup, Enerflex utilizes fast-start natural gas engines that match diesel load-acceptance speeds without the messy fuel management or heavy emissions of diesel.
EFX’s strong backlog at a bargain valuation
Beyond the emerging AI upside, Enerflex is backed by rock-solid operating fundamentals. Approximately 65% of its revenue is recurring, providing incredible cash flow stability. Furthermore, the company closed the second quarter with a massive US$1.5 billion engineered systems (ES) segment backlog, providing clear long-term earnings visibility.
Despite double-digit earnings growth prospects, the market still prices Enerflex stock like a traditional cyclical energy sector stock.
EFX stock trades at a forward P/E of just 12, accompanied by a forward price-earnings-to-growth (PEG) ratio of 0.3. A PEG ratio well below 1 indicates a stock that may be significantly undervalued relative to its future earnings growth trajectory.
Investor takeaway
Enerflex stock isn’t a typical tech play, and that’s precisely why it’s compelling for investors who believe in its emerging capacity to provide data centre customers with the scarce energy they need today. As tech giants race to secure off-grid electricity to keep their AI models running, Enerflex stands ready with proven natural gas and trigeneration solutions. Canadian investors seeking a low-multiple valuation, strong recurring cash flow, and a hidden AI upside may take a closer look at Enerflex stock today.
