Babcock & Wilcox secures $2.4 billion deal to power Applied Digital's AI data centers

Babcock & Wilcox gets nod for $2.4 billion project to power AI campuses

March 4 (Reuters) - Babcock & Wilcox (BW.N), opens new tab said on Wednesday an Applied Digital-backed (APLD.O), opens new tab company has given a go-ahead to their $2.4 billion deal to deliver equipment that would power the technology firm's artificial intelligence campuses. Shares of Babcock surged nearly 31% in early trading after Base Electron gave the full notice for the 1.2-gigawatt power project. U.S. power demand reached record highs in 2025 and is projected to accelerate this year as major ⁠tech companies rapidly expand data centers, some of which use as much electricity as an entire city at a single location. Applied Digital had formed Base Electron to produce power for the technology firm's AI campuses under separate agreements. The power producer in turn hired Babcock to design, procure and construct the facility. Under their agreement, Babcock will supply four 300-megawatt natural gas-fired boilers and steam turbine generator ⁠systems. Applied Digital CEO Wes Cummins said the company is also evaluating an option with Base Electron to deliver another 1.2 GW of generation capacity in the future, according to Babcock & Wilcox. Separately, Babcock posted a revenue ⁠of $161.0 million in the fourth quarter, beating analysts' average estimate of $155.60 million, according to data compiled by LSEG. Babcock CEO Kenneth Young said they are ⁠in discussions on other data center opportunities reflected in its current pipeline of more than $12 billion. "We are also seeing increased coal ⁠utilization and opportunities to deliver coal technologies that provide reliable and secure power to our utility customers in North America," Young added. Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Babcock & Wilcox gets nod for $2.4 billion project to power AI campuses

Babcock & Wilcox has received a significant go-ahead for a $2.4 billion deal. This project will supply equipment for Applied Digital's artificial intelligence campuses. Shares of Babcock saw a substantial rise following the announcement. Babcock & Wilcox said on Wednesday an Applied Digital-backed company has given a go-ahead to their $2.4 billion deal to deliver equipment that would power the technology firm's artificial intelligence campuses. Shares of Babcock surged nearly 23% in ⁠premarket ⁠trading after Base Electron gave the final notice for the 1.2-gigawatt power project. U.S. power demand reached record highs in 2025 and is projected to acceleratethis year as major tech companies rapidly expand data centers, some of which use as much electricity as an entire city at a single location. Applied ⁠Digital had formed Base Electron to produce power for the technology firm's AI campuses under separate agreements. The power ⁠producer in turn hired Babcock to design, procure and construct the facility. Under their agreement, Babcock will supply four 300-megawatt natural gas-fired boilers and steam turbine generator systems. Applied Digital CEO Wes Cummins said the company is also evaluating an option with Base Electron to deliver another 1.2 GW of generation capacity in the future, according to Babcock & Wilcox. Separately, Babcock posted a revenue of $161.0 million in the fourth quarter, beating analysts' average estimate of $155.60 million, ⁠according to data compiled by LSEG. Babcock CEO Kenneth Young said they are in discussions on other data center opportunities reflected in its current pipeline of more than $12 billion. "We are also seeing increased coal utilization and opportunities to deliver coal technologies that provide reliable and secure power to our utility customers in North America," Young added.

Babcock & Wilcox Rockets On $2.4 Billion AI Data Center Project, Reports Q4 Results - Applied Digital (NASDAQ:APLD), Babcock & Wilcox (NYSE:BW)

Babcock & Wilcox Enterprises Inc. (NYSE:BW) shares skyrocketed on Wednesday after the company said it received full notice to proceed on a $2.4 billion design-build agreement with Base Electron to deliver 1.2 gigawatts of new power generation capacity. The generation will support Applied Digital Corp's (NASDAQ:APLD) AI Factory campuses under separate power supply agreements. $2.4 Billion Project To Power AI Data Centers The project includes four 300-megawatt natural gas-fired boilers and steam turbine generator systems designed to supply power to high-density AI data centers. Base Electron, an independent power producer backed by Applied Digital, is developing generation assets that provide new dispatchable capacity to the grid and contracted customers. Under the agreement, Babcock & Wilcox will handle engineering, procurement, and construction of the facility, with engineering and manufacturing already underway. Siemens Energy AG (OTC:SMEGF) will design and supply the steam turbine generator sets. Management Commentary "Receiving full notice to proceed for this $2.4 billion project further underscores the strategic role B&W plays in supporting the rapidly expanding power needs of large‑scale AI data centers," stated Kenneth Young, B&W Chairman and Chief Executive Officer. "Our natural gas-fired boilers and related technologies - as well as steam turbines supplied through an agreement with Siemens Energy - provide the reliable, high‑capacity energy generation on a schedule that is required for the grid today," Young added. Applied Digital Chairman and CEO Wes Cummins stated, "This project represents to us a critical step in turning power into operational AI capacity." Base Electron will support the company's "long-term campus strategy" and its "disciplined approach to scaling AI infrastructure," he added. Cummins added that Applied Digital is evaluating an option with Base Electron for another 1.2 gigawatts of generation capacity. Siemens Energy will supply steam turbine generator technology designed to deliver long-term performance and reliability. Financial Performance Overview Babcock & Wilcox also reported its fourth-quarter 2025 financial results. Revenue totaled $161.0 million, missing the $173.87 million estimate and remaining flat year over year. The company reported a loss of 5 cents per share, compared with the consensus estimate of break-even. Despite the miss, operating income rose to $12.2 million from $2.6 million a year earlier, while adjusted EBITDA increased 53% to $16.4 million. The company said results were supported by a 17% increase in parts and services revenue, driven by stronger coal generation usage and higher baseload demand in North America. Babcock & Wilcox also strengthened its balance sheet by paying off bonds due in February 2026. The company ended the year with net debt of $119.7 million. Meanwhile, its global project pipeline now exceeds $12 billion, with a continuing operations backlog of $2.8 billion, including the $2.4 billion AI data center project. Technical Analysis Over the past 12 months, Babcock & Wilcox has seen an impressive 970% increase in stock price. Currently, the stock is trading 15.4% above its 20-day SMA and a substantial 157.1% above its 200-day SMA, indicating strong bullish momentum in the longer term. The stock's price of $9.83 is also significantly higher than its 52-week low of 22 cents, though it has yet to breach the 52-week high of $11.57. In technical indicators, the RSI stands at 40.89, suggesting neutral market sentiment, while the MACD indicates bearish signals, with the MACD line 20 cents below the signal line. These mixed signals suggest cautious optimism could be warranted. Benzinga Edge Rankings Below is the Benzinga Edge scorecard for Babcock & Wilcox Enterprises, highlighting its strengths and weaknesses compared to the broader market: * Value: Weak (Score: 11.69) -- Trading at a steep premium relative to peers. * Momentum: Bullish (Score: 99.63/100) -- Stock is outperforming the broader market. The Verdict: Babcock & Wilcox Enterprises' Benzinga Edge signal shows mixed signals, with strong momentum but a low value score suggesting caution BW Price Action: Babcock & Wilcox shares were up 25.59 at $10.16 at the time of publication on Wednesday, according to Benzinga Pro data. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Babcock & Wilcox gets green light for $2.4bn AI-dedicated power plant

Babcock & Wilcox said it has received final approval to build a $2.4bn power plant to supply Applied Digital's artificial intelligence campuses. The announcement sent the stock up about 22% at the opening bell on Wall Street. The project, approved by Base Electron, a company set up by Applied Digital to generate electricity for its facilities, calls for total capacity of 1.2 gigawatts. Babcock will handle the plant's design, procurement and construction, and will supply four 300-megawatt natural gas boilers, along with steam turbine and generator systems. Applied Digital is already considering adding a further 1.2 gigawatts at a later date. The initiative comes as US electricity demand hits record levels, driven by the rapid expansion of data centers. Babcock & Wilcox also reported quarterly revenue of $161m, above expectations of $155.6m. The company cited a project pipeline exceeding $12bn and opportunities tied to energy infrastructure for data centers.