Babcock & Wilcox Signs $2.4 Billion Deal to Support Applied Digital Data Centers

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Babcock & Wilcox has agreed to design, procure and construct four 300-megawatt natural gas-fired power systems to support Applied Digital data centers.

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Powering Data Centers

Earlier this month, Babcock & Wilcox (B&W) signed an agreement with industrial power provider (IPP) Base Electron to design, procure and construct four 300-megawatt (MW) natural gas-fired power systems at upcoming data centers of Dallas-based Applied Digital.

Industrial Info is tracking multiple artificial intelligence-capable campuses in development for Applied Digital, including those in Louisiana, Iowa and the Dakotas.

The Companies & the Contract

Multiple companies have stakes in the deal. Industrial power provider Base Electron, with whom B&W signed the $2.4 billion contract, was formed by Applied Digital specifically to provide power to its data centers. Base is an independent company from Applied, and Applied executives have referred to being the "customer" of Base. According to POWER Magazine, the two companies presently enjoy an "exclusive customer-provider relationship."

With Base Electron to provide four power systems, it in turn went to B&W to develop and implement the systems. B&W will design and construct the power systems using its own boilers paired with natural gas-fired turbines from Siemens Energy.

The Data Centers

Industrial Info has linked one data center in North Dakota with a B&W power system. That is the expansion project planned for the Polaris Forge 1 project in Ellendale, North Dakota. While initial construction was completed late last year, Polaris already is underway with an expansion that will provide a third building and is expected to kick off construction on a fourth later this year. Each 900,000-square-foot building will require 150 MW of power, dovetailing with B&W's 300-MW power systems.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the project reports on the Polaris Forge 1 expansion, while GMI Power Project Database subscribers can view the report on the potential B&W power system.

Construction also is underway for the accompanying Polaris Forge 2 project in Harwood, North Dakota, around 150 miles southwest of Ellendale. The facility is expected to require around 280 MW of power and begin operations later this year. Click here to view the project reports.

In January, Applied announced that it had broken ground on its Delta Forge 1 project in Louisiana, another complex that will begin operations with two 150-MW buildings. Initial operations are expected to begin in mid-2027, with the second building going into operations later that year or 2028. Subscribers can learn more by viewing the related project reports.

Applied Digital also plans to construct data centers in Iowa and South Dakota.

With the power consumption of data centers a hot-button issue, Applied Digital is part of a growing strategy to build accompanying baseload power along with data centers in order to mitigate public resource consumption and potentially drive up user rates for utilities' infrastructure development. If Applied Digital's accompanying gas-fired power systems prove successful, further agreements between Applied, Base Electron, B&W and possibly Siemens may be in store for more facilities down the road. The companies mentioned they have left room for B&W to provide an additional 1.2 gigawatts of power to accompany future projects.

Key Takeaways

• Babcock & Wilcox recently signed a $2.4 billion agreement to supply Applied Digital data centers with four 300-MW gas-fired power systems.
• Applied Digital is constructing or has plans to construct data centers in North Dakota, South Dakota, Louisiana and Iowa.
• The power systems will use B&W boilers and Siemens Energy turbines.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).