Babcock & Wilcox (B&W) announced on November 4, 2025, that it has entered into a limited notice-to-proceed agreement with Applied Digital for a project valued at over USD 1.5 billion to deliver 1 gigawatt of power for an Applied Digital AI Factory. The company has solidified its entry into the AI Data Center power supply market by leveraging efficient, readily available steam generation technology, achieving a shorter time-to-market than traditional simple-cycle power plants.

Project Specifications and Timeline

B&W plans to design and install four 300-megawatt natural gas-fired power plants, each featuring proven boilers and associated steam turbines. The plant is targeted to begin operation in 2028. Full contract release is anticipated in the first quarter of 2026.

The company expects to sign a long-term parts and services contract to support the facility once commercial operations begin. B&W's solutions for AI Data Centers efficiently utilize natural gas while providing reliable, redundant, and readily available power faster than combined-cycle or simple-cycle plants.

Company Leadership Statements

Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, stated: "We're proud to partner with B&W, a company with nearly 160 years of proven leadership in power generation. Their advanced boiler and steam turbine technology delivers efficiency on par with the simple-cycle gas turbines we evaluated – while enabling faster deployment. This partnership enhances our ability to add more capacity to current and future sites, giving Applied Digital a distinct speed-to-market advantage in bringing power generation online."

Kenneth Young, B&W Chairman and Chief Executive Officer, commented: "B&W has designed and installed thousands of boilers and has more than 400 gigawatts of installed generating capacity at utility and industrial plants around the world. Our solutions for AI Data Centers are proven technologies that utilize natural gas efficiently while providing reliable, redundant and readily available power faster than combined-cycle or simple-cycle plants. This approach leverages the core strengths of Babcock & Wilcox and represents an ideal solution to power data centers."

Company Expertise and Experience

Young further emphasized the company's capabilities, stating: "B&W also has extensive engineering, technology, construction and project management expertise, earned through decades of successfully executing some of the largest power projects in the global market. Our proven track record, as well as our broad experience in power plant operations and maintenance, will help assure a completely integrated, seamless solution for our customer from start to finish."

Babcock & Wilcox Enterprises, Inc. is headquartered in Akron, Ohio, and is described as a leader in energy and environmental products and services for power and industrial markets worldwide. The company has designed and installed thousands of boilers and has more than 400 gigawatts of generating capacity at utility and industrial plants worldwide.

Forward-Looking Statements and Risk Factors

B&W issued cautionary statements regarding forward-looking statements contained in the announcement, including statements relating to the limited notice to proceed and an anticipated full notice to proceed in connection with the design and installation of the one gigawatt power plant for the AI Data Center project. The company noted that these forward-looking statements are based on management's current expectations and involve numerous risks and uncertainties.

The company advised that actual results may vary materially from those expressed if one or more risks materialize, and cautioned readers not to place undue reliance on forward-looking statements, which speak only as of the date of the release. B&W stated it undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

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