(Yicai) March 31 -- Shares of Jereh Oilfield Services Group jumped after the Chinese provider of oilfield engineering services said it has secured an order worth USD341 million for gas turbine generators to be used in US data centers. 

After surging by as much as 6.8 percent earlier today, Jereh [SHE: 002353] closed 3.2 percent higher at CNY96.80 (USD14), while the broader Shenzhen market gave up 1.8 percent amid the fallout from the Iran war. Jereh's stock has gained 37 percent since the end of last year.

Jereh's subsidiary GenSystems Power Solutions will provide the US buyer with the gas turbine generators by the end of 2027, the Yantai-based firm announced late yesterday. The deal is the equivalent of about 18 percent of Jereh's audited revenue for fiscal 2024, so it will likely positively impact future earnings, the firm noted.

It is the second such deal that GenSystems has signed with the same client since February, when they sealed a USD182 million contract, with delivery scheduled within 30 months.

The generators will be used to supply power to data centers, Jereh said, noting that due to their standardized modular design, they can be quickly transported, assembled on-site, and flexibly expanded, effectively addressing the challenges posed by tight project construction timelines and limited installation space.

The latest deal not only lays a solid foundation for future cooperation between Jereh and the client in the power equipment business, but also helps strengthen the market competitiveness of Jereh’s products and enhance their global brand influence, the firm said.

This is also the fifth order for gas turbine generator sets that GenSystems has received from US clients since last November, as the rapid growth in demand for computing power and electricity services driven by artificial intelligence training has boosted demand for top-spec generators from local data centers.

Besides the latest two supply deals, GenSystems inked two worth a total of USD212 million with a US AI giant in late November and early December, along with a further one worth over USD100 million with another US buyer at the start of January.

Editor: Martin Kadiev