Archrock Banks on LNG and Data Centers for Growth

Archrock, a US gas compression company, is set to ride the wave of increasing natural gas demand from LNG exports and data centers. According to RBC Capital Markets, Archrock's next growth push will focus on adding about 1 million horsepower of compression capacity by spending $1.4-1.6 billion between 2027-2030.

This investment aims to capitalize on growing LNG export volumes, rising production in the Permian Basin, and increased gas consumption for data center power generation. The bank points out that Archrock has already signed an eight-year contract covering 665,000 horsepower as evidence of customers locking in capacity earlier and for longer.

RBC noted that long lead times in a tight equipment market push customers to reserve horsepower sooner, resulting in more multi-year, take-or-pay contracts. This increased revenue visibility can make Archrock's stock valuation less sensitive to forecast tweaks, such as RBC's lower 2026-2027 EBITDA estimates.