Key Takeaways:
Babcock & Wilcox signed an agreement with Siemens Energy to begin work on 20 steam turbine generator sets totaling 1 gigawatt for data center projects.
"As demand for dependable, large-scale power generation continues to accelerate, particularly from AI data center customers, we are strengthening our collaboration with Siemens Energy through this agreement," Brandy Johnson, chief technology officer at B&W, said. "This order secures 1 GW of capacity and further positions us to deliver reliable, high-capacity energy solutions on the accelerated timelines our customers require."
The turbine sets, each rated at 50 megawatts, will be used in B&W's FastPower program targeting data center applications. The agreement is separate from a previously announced turbine order, the company said in a statement. B&W cited its experience across thousands of power generation installations globally as supporting its ability to deploy the systems.
The agreement gives B&W access to what the company described as a strong pipeline of data center and power generation opportunities. No financial terms or specific project timelines were disclosed.
Tobias Panse, senior vice president of steam turbines and generators at Siemens Energy, said the agreement "reflects a broader trend we are currently seeing in the U.S. market: growing demand for reliable, affordable, and resilient energy infrastructure." Siemens Energy is meeting that demand with "the world's most efficient steam turbine technology," strong execution and long-standing customer partnerships, he added.
The deal adds to a wave of power equipment orders as AI data centers drive a surge in electricity demand. Data center electricity demand has become the dominant driver of new power generation investment in the U.S., with utilities and developers racing to secure supply for hyperscaler customers. B&W, headquartered in Akron, Ohio, provides energy and environmental products and services for power and industrial markets. Its FastPower program bundles generation technologies to deliver capacity on accelerated timelines, a selling point as data center developers seek faster paths to power.
Shares of B&W closed at $8.88 on Monday, down 5.23 percent, and rose 34.25 percent to $11.92 in pre-market trading. The move reflects investor optimism about the company's exposure to the AI-driven power buildout, which has also lifted suppliers of turbines, transformers and grid equipment.
The agreement locks in 1 GW of turbine capacity for B&W as hyperscalers race to secure power for AI data centers. Investors will watch for further order announcements and project timelines as B&W works through its pipeline of data center opportunities.
This article is for informational purposes only and does not constitute investment advice.
