(Yicai) July 23 -- Shares of Jereh Oilfield Services Group surged by their daily trading limit after the Chinese engineering company said it has secured a USD1.5 billion order to supply gas turbine generators to a well-known cloud services provider.

Jereh [SHE: 002353] jumped 10 percent to close at CNY135.11 (USD19.95) per share in Shenzhen today. The stock has climbed 91 percent since the end of last year.

J&F Power Systems, Jereh’s joint venture with FTAI Aviation, inked a five-year master sales agreement for gas turbine generator sets with the unidentified customer, and has received the first order under the deal, its Yantai-based parent company announced late yesterday. The order stipulates that deliveries should be completed in batches by November next year.

The value of the order is equivalent to about 61 percent of Jereh’s audited operating revenue last year, it said, adding that smooth execution of the contract will have a positive impact on business performance.

This is not the first order for gas turbine generators that the client has placed with Jereh. The latest brings the business secured from this customer to USD1.72 billion, according to the company.

Jereh withheld the buyer’s identity and the project’s location, citing confidentiality. But it did confirm that the client has inked similar deals in the past 12 months. Earlier announcements indicate that major purchasers have all been technology firms based in North America.

Surging demand for computing power services, driven by artificial intelligence training, has sparked a boom in US data center construction, creating growth opportunities for Jereh's gas turbine generators’ business.

The new deal demonstrates the client's high regard for Jereh's power supply solutions, product performance, and delivery capabilities, consolidates its competitive advantage in the data center equipment market, and enhances its global brand influence and market competitiveness, the firm pointed out.

This is the seventh gas turbine generator contract Jereh’s subsidiaries have signed with data center or AI company clients since last November, and it is also the most lucrative one.

From last November to early this April, Jereh’s wholly owned US unit GenSystems Power Solutions signed six sales contracts for gas turbine generators worth over USD1.1 billion with local data center or AI firms, including multiple contracts with the client behind this latest order.

Editor: Futura Costaglione