Babcock & Wilcox Selects Siemens Energy to Supply Steam Turbine Generator Sets for Applied Digital Data Center Power Project

Key Terms

steam turbine generator sets technical

A steam turbine generator set is the combined machine that uses high-pressure steam to spin a turbine which then drives an electrical generator, converting heat into electricity much like a windmill uses wind to turn blades and produce power. For investors, these are large, long-lived capital assets at power plants and industrial sites whose performance, fuel costs, efficiency and maintenance needs directly affect a company’s production capacity, operating costs and revenue stability.

limited notice to proceed regulatory

A limited notice to proceed is a short, partial green light from a client that lets a contractor begin specific early work—such as site preparation, ordering long‑lead materials, or hiring crews—before the full contract is signed. For investors it signals that a project is moving from planning toward execution, which can accelerate revenue timing but also exposes the company to early costs and schedule risk if the full contract terms change; think of it as starting the foundation before the final building permit paperwork is complete.

simple-cycle technical

A simple-cycle plant is a power-generation setup where fuel is burned to spin a turbine and make electricity in one direct step, without capturing and reusing the waste heat. Think of it like a car that throws away hot engine exhaust instead of using it to power an extra gearbox: it starts quickly and costs less to build but produces less electricity per unit of fuel and tends to be more expensive to run. Investors care because simple-cycle units offer fast, flexible capacity that can earn revenue in tight markets or for backup power, but they usually have lower long‑term margins and different regulatory and emissions profiles than more efficient designs.

combined-cycle technical

A combined-cycle power plant uses two linked systems—typically a gas turbine and a steam turbine—so waste heat from the first is captured to run the second, boosting overall electricity output from the same fuel. For investors, that higher efficiency means lower fuel costs per megawatt, smaller emissions per unit of power and generally better operating margins, but it also involves larger upfront construction costs and technical complexity.

- Selection will enable B&W to deliver power for the project by the end of 2028

- Partnership with Siemens Energy is a key step in delivering reliable power to rapidly growing AI Data Center market

AKRON, Ohio--(BUSINESS WIRE)-- Babcock & Wilcox (B&W) (NYSE: BW) announced today that it has selected Siemens Energy to provide steam turbine generator sets for B&W’s groundbreaking project to deliver one gigawatt of power for an Applied Digital AI Factory. B&W and Siemens have entered into an agreement for a limited notice to proceed to secure the turbine sets, which will enable B&W to deliver power for the project by the end of 2028. The full contract release is expected in the first quarter of 2026.

B&W previously announced it has signed a limited notice to proceed with Applied Digital for the project to design and install four 300-megawatt natural gas-fired power plants, consisting of proven boilers and associated steam turbines, and expects to sign an ongoing parts and services contract to support the facility once commercial operation begins. To meet the project's accelerated schedule, the plants use a proven configuration: a gas-fired boiler supplies heat and thus steam to drive the steam turbines and generate energy in a dispatchable and reliable manner.

“This arrangement brings together two companies with long histories of innovation and leadership in the power generation industry,” said Kenneth Young, B&W Chairman and Chief Executive Officer. “Leveraging Siemens Energy’s advanced turbine technology alongside B&W’s proven boiler systems positions us to meet critical schedule milestones and deliver reliable power by the end of 2028.”

“Our selection of Siemens Energy is a key step in delivering efficient, reliable power for our customer, Applied Digital, and the rapidly growing AI Data Center market,” said Brandy Johnson, B&W Chief Technology Officer. “We can deliver data center solutions significantly faster than what could be achieved with simple-cycle or combined-cycle power plants.”

“By pairing our steam turbine systems with B&W’s established boiler technology, we can deliver a straightforward, cohesive setup for large‑scale power,” said Tobias Panse, Senior Vice President, Steam Turbine and Generators, Siemens Energy, “a configuration well-suited to the continuous demand profile of modern AI facilities.”

Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, applauded the agreement, noting that B&W’s teaming with Siemens Energy brings significant strength and experience.

“Teaming with Babcock & Wilcox and Siemens Energy – both global market leaders with many decades of experience – ensures we have the proven technologies and trusted expertise needed to meet our aggressive timelines,” Cummins said. “This agreement gives us confidence that we can deliver the capacity needed to support the next generation of AI infrastructure, and we look forward to working with the teams from both of these outstanding companies.”

B&W brings unmatched experience to the project, having designed and installed thousands of boilers worldwide at utility and industrial plants. The company’s solutions for AI and other data centers leverage proven technology to provide reliable, redundant and readily available power. This approach builds on B&W’s decades of engineering, technology, construction and project management expertise, ensuring a fully integrated solution from design through operation.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to an agreement through which Siemens Energy would supply steam turbines supporting B&W’s project to deliver one gigawatt of power for an Applied Digital AI Factory project. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260108823307/en/

Investor Contact:

Investor Relations

Babcock & Wilcox

704.625.4944

investors@babcock.com

Media Contact:

Ryan Cornell

Public Relations

Babcock & Wilcox

330.860.1345

rscornell@babcock.com

Source: Babcock & Wilcox Enterprises, Inc.