Babcock & Wilcox has secured a $2.4 billion contract to construct natural gas-fired boiler and steam turbine plants for Applied Digital. The project aims to provide 1.2 GW of power capacity for AI data centers, addressing supply chain constraints associated with traditional gas turbines.
B&W states that its packaged boiler units can be delivered in approximately one year, significantly faster than the multi-year wait times for large-frame gas turbines. The company claims these systems match the peak-hour efficiency of standard gas turbines.
Siemens Energy will supply 20 steam turbine-generator sets, each with a 50 MW rating, contributing 1 GW to the total capacity. The notice-to-proceed for this supply agreement is scheduled for August 2026.
Applied Digital’s initiative for the 1 GW capacity is expected to be operational by 2028, with a notice to proceed set for March 2026. The company previously achieved 50 MW of online capacity at its Ellendale, North Dakota site by late 2025.
Industry forecasts indicate that AI infrastructure could require tens of gigawatts of new power capacity by 2030. Hyperscalers are increasingly opting for on-site natural gas generation to bypass utility grids for their baseload power needs.
