U.S. energy group Babcock & Wilcox (B&W) has announced that it has received a full notice to proceed on a USD2.4bn design-build agreement with Base Electron, an Independent Power Producer (IPP), to support data centre campuses. B&W will supply power for AI factory campuses operated by US-based Applied Digital (B&W press release, 03/04/2026).
- Applied Digital designs, builds, and operates high-performance, sustainably engineered data centres and colocation services for artificial intelligence.
- Base Electron, backed by Applied Digital, focuses on developing and owning generation assets that provide new, dispatchable capacity to the grid and to contracted customers, including power supply agreements supporting Applied Digital’s high-density AI data centre campuses.
The project will provide 1.2 GW of new generation capacity and includes four 300-MW natural gas-fired boilers and steam turbine generator systems supplied by Siemens Energy. The generated power will be delivered under separate power supply agreements. B&W will engineer, procure, and construct the project, and both companies confirmed that work is already underway.
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