Why it matters
The strategic read
Turns Applied Digital’s AI Factory expansion into a dedicated generation build, not just grid interconnection hope. The deal puts B&W, Siemens Energy and Base Electron behind 1.2 GW of gas-fired steam generation intended to convert dispatchable power into contracted AI campus capacity.
Source-supported terms
What was disclosed
- 01
Babcock & Wilcox said it received full notice to proceed on a $2.4B design-build agreement with Base Electron, an independent power producer backed by Applied Digital.
- 02
The project will deliver 1.2 GW of new generation capacity intended to supply power to Applied Digital AI Factory campuses under separate power supply agreements.
- 03
The generation build includes four 300 MW natural gas-fired boilers and steam turbine generator systems.
- 04
B&W will engineer, procure and construct the facility, with engineering and manufacturing activities already underway.
- 05
Siemens Energy was formally released to design and supply the steam turbine generator sets.
- 06
Applied Digital said stable, dispatchable power through IPP partnerships is foundational to meeting the growing demands of its campuses.
- 07
Applied Digital and Base Electron are evaluating an option for another 1.2 GW of generation capacity to support future development.
Disclosure boundary
What is known—and what is not
Primary company announcement; full design-build agreement, Base Electron ownership and financing structure, power supply agreements, site locations, fuel supply, permits, emissions controls, delivery schedule by campus, interconnection terms and option mechanics are not public.