Babcock & Wilcox Enterprises Announces 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 AI Factory; Co. Plans To Design And Install The Plant's Four 300-Megawatt Natural Gas-Fired Power Plants Consisting Of Proven Boilers And Associated Steam Turbines

Babcock & Wilcox (B&W) (NYSE:BW) announced today 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 $1.5 billion to deliver one gigawatt of power for an Applied Digital (NASDAQ:APLD) AI Factory. Full contract release is anticipated in the first quarter 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.

"We're proud to partner with B&W, a company with nearly 160 years of proven leadership in power generation," said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. "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."

"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," said Kenneth Young, B&W Chairman and Chief Executive Officer. "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."

"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," Young said. "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."