B&W, Siemens & Catering to AI's Ever-Growing Energy Appetite

In 2026, a great many of the private sector's largest construction projects are those related to AI and computing.

Nowhere else is this pattern more visible than in the US, where more than half the of all private investment into AI takes place.

According to the Bank of America, construction spending in the US data centre sector hit an all-time high of $40bn in June last year, representing a 30% increase from 2024, while the data centre construction market is expected to reach US$112bn by 2030.

One of the most cost-intensive aspects of data centre projects is, of course, the energy infrastructure that supports the facilities. This is thanks to the vast quantities of electricity and water that data centres demand, as well as the sophistication of the energy management technology required to run the structures efficiently.

Babcock & Wilcox (B&W), an American energy management and services firm based out of Ohio, has recently been tasked with designing and installing an energy system for an AI factory run by Applied Digital.

For the project (which has a value of more than US$1.5bn) B&W is planning to design and install the plant’s four 300MW natural gas-fired power plants, consisting of proven boilers and associated steam turbines. 

To assist with the nuts and bolts of the design, B&W has enlisted the help of Siemens Energy. The German firm will supply B&W with several advanced steam turbine generator sets.

The construction is set for completion by the end of 2028 and the development marks a major investment in stable, dispatchable generation in the data centre sector, where private, self-sufficient power generation is an increasingly prevalent trend.

Kenneth Young, Chairman and Chief Executive Officer of Babcock & Wilcox, says: “This arrangement brings together two companies with long histories of innovation and leadership in the power generation industry.

“Leveraging Siemens Energy’s advanced turbine technology alongside B&W’s proven boiler systems positions us to meet critical schedule milestones and deliver reliable power by the end of 2028.”

Natural gas powering continuous output

The 1GW installation will employ a thermal generation model that transforms heat from natural gas into steam used to drive Siemens Energy turbines, ensuring dependable baseload capacity. Unlike intermittent renewable or peaking systems, this configuration provides a round-the-clock power supply essential for industrial-scale operations.

B&W’s approach prioritises speed and reliability. The company’s modular design allows for faster deployment compared to more complex simple-cycle or combined-cycle plants, while still achieving stable long-term output. By relying on proven engineering principles, the project aims to deliver consistent returns with reduced implementation risk.

Brandy Johnson, Chief Technology Officer at Babcock & Wilcox, says: “Our selection of Siemens Energy is a key step in delivering efficient, reliable power for our customer, Applied Digital and the rapidly growing AI Data Center market.

“We can deliver data center solutions significantly faster than what could be achieved with simple-cycle or combined-cycle power plants.”

For Siemens Energy, the project illustrates how robust turbine systems can balance the needs of digital infrastructure with the realities of energy provision. Its equipment will help ensure stable energy output to meet baseload requirements, particularly for facilities operating continuously at full capacity.

Tobias Panse, Senior Vice President, Steam Turbine and Generators at Siemens Energy, says: “By pairing our steam turbine systems with B&W’s established boiler technology, we can deliver a straightforward, cohesive setup for large-scale power.

“A configuration well-suited to the continuous demand profile of modern AI facilities.”

Collaboration strengthening power infrastructure

Applied Digital’s high-density computing campuses demand substantial and uninterrupted energy resources. The collaboration with B&W and Siemens Energy reinforces the role of advanced thermal power in enabling secure, scalable infrastructure during a period of rapid digital expansion.

Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, says: “Teaming with Babcock & Wilcox and Siemens Energy – both global market leaders with many decades of experience – ensures we have the proven technologies and trusted expertise needed to meet our aggressive timelines.

“This agreement gives us confidence that we can deliver the capacity needed to support the next generation of AI infrastructure and we look forward to working with the teams from both of these outstanding companies.”

Babcock & Wilcox’s long history in global thermal power gives the project a strong foundation. The company has delivered thousands of boiler systems for utilities and industry, providing a track record of efficient construction, robust performance and ongoing support.

Together, B&W and Siemens Energy are positioned to deliver integrated infrastructure to power the next stage of digital and energy sector growth.