Energy group Babcock & Wilcox (B&W) said it will proceed on a $2.4-billion design-build agreement with an independent power producer (IPP) to support data center campuses. B&W on March 4 said the deal with Base Electron, an IPP, will supply power for what the groups called artificial intelligence (AI) factory campuses for Dallas, Texas-headquartered Applied Digital.
The project includes four 300-MW natural gas-fired boilers and steam turbine generator systems supplied by Siemens Energy. The generation will be delivered under separate power supply agreements. B&W will engineer, procure, and build the project. The companies said work already is underway.
“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,” said Kenneth Young, chairman and CEO of Akron, Ohio-based B&W. “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.”
Base Electron, backed by Applied Digital, is focused on developing and owning generation assets that deliver dispatchable power generation capacity to the grid and to contracted customer. That includes agreements supporting Applied Digital’s AI data center campuses. Applied Digital designs, builds, and operates data centers and colocation services for AI, networking, and blockchain workloads. The company was founded in 2021 and is known for its Polaris Forge AI Factory model.
AI Factory Campus
Applied Digital in late January said it had broken ground on Delta Forge 1, an AI Factory campus “located in a strategic southern U.S. market.” Applied Digital said “Delta Forge 1 is designed to support an initial 430 MW of total utility power, enabling up to 300 MW of critical IT load with the ability to scale considerably in 2028 and beyond, translating available power into live, high density AI capacity for hyperscale customers.” The company said the Delta Forge 1 campus “will initially comprise two 150-MW facilities spanning more than 500 acres.” Operations at Delta Forge 1 are expected to begin in mid-2027.
“With data processing demand growing at an unprecedented pace, B&W is uniquely positioned to provide the proven, flexible and redundant power solutions these mission‑critical operations require and deploy them faster than traditional combined-cycle or simple-cycle gas technologies,” Young said. “This contract further reinforces our commitment to providing technologies that meet the urgent demand for reliable and secure power.”
“This project represents to us a critical step in turning power into operational AI capacity,” said Wes Cummins, chairman and CEO of Applied Digital. “Base Electron’s development of dedicated, reliable generation is intended to support our long-term campus strategy and reinforce our disciplined approach to scaling AI infrastructure. As a customer of Base Electron, securing stable, dispatchable power through partnerships with IPPs is foundational to meeting the growing demands of our campuses. We believe B&W’s decades of experience in large-scale steam generation and project execution make them a strong partner as we advance this platform. Additionally, we are evaluating an option with Base Electron for another 1.2 GW of generation capacity to support future development.”
“Siemens Energy is proud to support B&W and Base Electron on this important project by supplying our advanced steam turbine generator technology,” said Tobias Panse, senior vice president for Industrial Steam Turbines and Generators at Siemens Energy. “Our solution is engineered to deliver the performance, reliability and efficiency required for a facility of this scale and strategic importance, ensuring long-term operational excellence and sustained value for our partners.”
Base Electron Corp. is a newly formed IPP that was founded by Applied Digital for the purpose of developing dedicated power generation intended to support Applied Digital’s long-term campus strategy and the latter’s approach to scaling AI infrastructure. Base Electron is an independent company from Applied Digital, focused on delivering stabilized power infrastructure returns to its investors through an exclusive customer-provider relationship with Applied Digital.
Applied Digital also is working on the Polaris Forge I and II projects in North Dakota. Polaris is a $3-billion, 700-MW complex that is expected online later this year. Coreweave, a New Jersey-based cloud computing group, is leasing the Polaris Forge 1 data center. Applied Digital last year contracted with global energy giant ABB to supply medium-voltage electrical infrastructure for the Polaris Forge 2 campus.
—Darrell Proctor is a senior editor for POWER.
