Babcock & Wilcox received final approval for a $2.4 billion deal to supply power equipment for a 1.2-gigawatt project by Base Electron, which was formed to power Applied Digital's AI campuses. The company's shares surged nearly 23% on the news, and it separately reported quarterly revenue that exceeded analyst estimates.
The deal highlights surging U.S. power demand, driven by data center expansion for AI and technology, with Babcock noting a pipeline of over $12 billion in similar opportunities. The specific project will involve Babcock supplying natural gas-fired boiler and turbine systems, with a potential future option for an additional 1.2 GW of capacity.
Main Topics: A major power equipment deal for AI data centers; surging U.S. electricity demand; Babcock & Wilcox's financial performance and business pipeline.