ERock, a generator manufacturer, reported a remarkable 1000% increase in its order backlog, which has significantly boosted investor confidence. The company secured a substantial order from Anthropic for 470 megawatts of power, contributing to an anticipated $1.7 billion in future business.
This order is particularly noteworthy as Anthropic is expected to go public later this year with a valuation projected to exceed $1 trillion. Following this news, analysts at Bank of America raised their price target for ERock from $16 to $19, maintaining a buy rating on the stock, which closed at $13.82.
Ross Fowler from Bank of America highlighted that this contract marks ERock's third major data-center deal and adds a prestigious client to its portfolio. The demand for power generation is surging due to the rapid expansion of data centers and server farms across the U.S., which are essential for the growing artificial intelligence sector.
ERock's modular gas generators are designed to mitigate grid constraints and enhance the speed of power delivery for new operations. The order from Anthropic is specifically for RockBlock generators, with additional operations and maintenance services expected to follow in separate contracts.
Fowler noted that while the revenue from installation and maintenance is not yet included in their projections, the contract with Anthropic reinforces the potential for further large-scale opportunities for ERock