Babcock & Wilcox (B&W) has received full notice to proceed under a $2.4 billion design‑build contract with independent power producer Base Electron to deliver 1.2 GW of new generation capacity in the US. The project will comprise four 300 MW natural gas‑fired boiler and steam turbine generator systems and will supply electricity to Applied Digital’s AI Factory campuses under separate power agreements.
According to B&W, engineering, procurement and manufacturing activities for the plant are already in progress. Siemens Energy has agreed to design and supply the steam turbine generator sets. Together, the companies aim to provide high‑efficiency, dispatchable generation to meet the fast‑expanding electricity requirements of large‑scale data centres.
Base Electron, founded by the team behind Applied Digital, is developing and owning generation assets designed to add flexible, grid‑supporting capacity while serving contracted customers. The new facility is intended to underpin the stable power supply needed for Applied Digital’s high‑density AI data operations.
Kenneth Young, B&W’s chairman and chief executive, said the contract highlights the company’s role in supporting the rapidly growing energy demands of AI‑driven computing. He added that the gas‑fired systems offer proven, reliable generating technology that can be deployed faster than traditional combined‑cycle plants.
Applied Digital chief executive Wes Cummins described the project as a key step in linking new generation capacity directly to operational AI infrastructure, indicating that the partners are also considering an option for a further 1.2 GW of capacity.
Siemens Energy’s Tobias Panse said its turbine technology would ensure efficiency, performance, and long‑term reliability for a project of this scale and strategic importance.
