Babcock & Wilcox Enterprises Inc. (NYSE:BW) shares skyrocketed on Wednesday after the company said it received full notice to proceed on a $2.4 billion design-build agreement with Base Electron to deliver 1.2 gigawatts of new power generation capacity.
The generation will support Applied Digital Corp’s (NASDAQ:APLD) AI Factory campuses under separate power supply agreements.
$2.4 Billion Project To Power AI Data Centers
The project includes four 300-megawatt natural gas-fired boilers and steam turbine generator systems designed to supply power to high-density AI data centers.
Base Electron, an independent power producer backed by Applied Digital, is developing generation assets that provide new dispatchable capacity to the grid and contracted customers.
Under the agreement, Babcock & Wilcox will handle engineering, procurement, and construction of the facility, with engineering and manufacturing already underway.
Siemens Energy AG (OTC:SMEGF) will design and supply the steam turbine generator sets.
Management Commentary
“Receiving full notice to proceed for this $2.4 billion project further underscores the strategic role B&W plays in supporting the rapidly expanding power needs of large‑scale AI data centers,” stated Kenneth Young, B&W Chairman and Chief Executive Officer.
“Our natural gas-fired boilers and related technologies – as well as steam turbines supplied through an agreement with …