Babcock & Wilcox (B&W) just released their version of a moonshot. They have a goal to provide 1 gigawatt (GW) of power to a data centre campus by the end of 2028. Led by Chairman and CEO Kenneth Young, B&W remains committed to that dream. They are inking a corporate partnership with a company that’s keeping its name under wraps in order to provide key turbine components for the burgeoning project.
Each proposed facility would produce 300 megawatts (MW) of power. They’ll include high-efficiency, high-pressure boilers and steam turbines — purpose-built for the ramped-up energy demands of today’s advanced manufacturing facilities. The partnership has accomplished a lot in its short history. A conditional notice to proceed has been given, meaning that advance work on the project can now begin. An agreement between B&W and their partner is expected to be completed in the first quarter of 2026.
B&W’s initiative hits the bullseye on that growing demand for flexible, on-demand power. It tracks with a larger tendency we’re seeing across the energy sector. Kenneth Young, President and CEO of Greater Washington, highlighted the importance of the partnership, saying,
“This arrangement brings together two companies with long histories of innovation and leadership in the power generation industry.”
The partnership’s timing coincides with Xcel Energy’s recent procurement of ten large gas turbines and related generation equipment from Siemens Energy in October 2025. These turbines will serve two planned power plants in Xcel Energy’s southwest service territory, which are expected to add 2.08 GW of dispatchable generation capacity.
These two actions are historic next steps in the partnerships between Xcel Energy and Siemens Energy on their project. They expect to have a complete contract locked down by Q1 of 2026. The two new facilities together will deliver flexible, on-demand power during peak periods and help respond to evolving market dynamics.
Tobias Panse, Senior Vice President at Siemens Energy, expressed their excitement about the collaboration with B&W, saying,
“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.”
As B&W moves forward with its project, it increasingly looks to bring the work in-house. At the same time, it seeks to play a positive role in the changing energy landscape increasingly shaped by data centers and other high-intensity loads. Innovative technologies and strategic partnerships are the driving force behind B&W’s success. This depth of expertise establishes them as the natural leader in the next evolution of power generation.