Shares of Babcock & Wilcox Enterprises Inc (NYSE:BW) surged 19.1% on Thursday after the company revealed a strategic partnership with Siemens Energy to supply steam turbine generator sets for a one-gigawatt power facility supporting an Applied Digital AI Factory.
The agreement represents a key milestone in B&W’s previously outlined plan to engineer and deploy four 300-megawatt natural gas–fired power plants for Applied Digital. As part of the deal, Siemens Energy will provide the turbine generator equipment needed to deliver power by the end of 2028, with the full contract expected to be finalized in the first quarter of 2026.
The proposed power solution integrates B&W’s established boiler technology with Siemens Energy’s turbine systems, using gas-fired boilers to produce steam that drives the turbines. The company said the configuration allows electricity to be generated 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.
Applied Digital Chairman and CEO Wes Cummins also welcomed the collaboration, noting that working with B&W and Siemens Energy “ensures we have the proven technologies and trusted expertise needed to meet our aggressive timelines.”
B&W added that its design enables data center power projects to be delivered much faster than traditional simple-cycle or combined-cycle plants, positioning the group to benefit from surging electricity demand driven by the rapid expansion of AI-focused data centers.