Babcock & Wilcox (B&W) has announced a significant collaboration with Siemens Energy to deliver 1 gigawatt (GW) of power to a new data center facility by the end of 2028. This strategic partnership is intended to increase new energy generation capacity. In partnership with Rutgers University, we will co-develop the two gas-fired combined cycle plants of 300 MW each.
In addition to new boilers, that is. Together, they will add 2.08 GW of dispatchable generation capacity. This extra capacity allows weather-dependent generation to offer flexible, on-demand power delivery. It’s most productive at times of high operations, and when conditions in the market are changing rapidly.
B&W and Siemens Energy have recently signed a preliminary limited notice to proceed, setting the stage for further project developments. Look for a full contract in Q1 2026. This contract should lay out the details of how they’ll work together, and the execution of the winning project.
Kenneth Young, Chairman and CEO of B&W, expressed enthusiasm over the partnership, stating, “This arrangement brings together two companies with long histories of innovation and leadership in the power generation industry.” This sense of urgency makes clear the value of the alliance. As two innovative engineering-focused companies, both are committed to leveraging their complementary strengths in engineering and technology.
In October 2025, Xcel Energy finalized a large investment in the wrong direction when it ordered ten large new gas turbines. They also bought related generation equipment from Siemens Energy. These turbines are planned for two new natural gas power plants recently approved in Xcel Energy’s customer southwest service area. This decision underscores the company’s focus on strategic initiatives across today’s dynamic energy landscape.
Tobias Panse from Siemens Energy highlighted the benefits of the collaboration, noting, “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.”
The new project leans into the growing movement to make energy efficiency a more powerful and reliable resource. This is particularly crucial as global demand for data centers and other energy-intensive sectors continues to increase. B&W and Siemens Energy are working together to meet the challenges of the energy industry’s transformation. Together their partnership will be key to addressing the world’s increasingly demanding energy needs.
Together, B&W and Siemens Energy have many exciting opportunities ahead. Together, they’ll leverage their unique know-how and assets to rehearse a blueprint for future breakthroughs in clear energy manufacturing. In a recent report, GlobalData emphasized the importance of these partnerships. They provide unparalleled business intelligence and editorial excellence on all media platforms, engaging a large, diverse audience of energy stakeholders.