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Babcock & Wilcox announces agreement with Applied Digital for $1.5B project

Babcock & Wilcox (BW) announced that it has further solidified its entry into the AI Data Center power supply market utilizing efficient and available steam generation technology with shorter time to market than traditional simple cycle power plants. B&W is also announcing an agreement for a limited notice to proceed for a project valued at over $1.5B to deliver one gigawatt of power for an Applied Digital (APLD) AI Factory. Full contract release is anticipated in the Q1 of 2026. B&W plans to design and install the plant’s four 300-megawatt natural gas-fired power plants consisting of proven boilers and associated steam turbines. The plant is targeted to begin operation in 2028. B&W also expects to sign an ongoing parts and services contract to support the facility once commercial operation begins.

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