Babcock & Wilcox (NYSE:BW) shares surge 28.89% on Siemens Energy partnership for AI power project.

Babcock & Wilcox Enterprises Inc (NYSE:BW) shares surged 28.8851% in pre-market trading on January 9, 2026, following a strategic partnership with Siemens Energy to supply steam turbine generator sets for a one-gigawatt power facility supporting an Applied Digital AI Factory. The collaboration marks a pivotal step in B&W’s strategy to engineer and deploy four 300-megawatt natural gas-fired power plants for the project, with Siemens Energy providing critical turbine equipment to ensure power delivery by late 2028. The full contract is slated for finalization in Q1 2026.

The agreement integrates B&W’s boiler technology with Siemens Energy’s turbine systems, enabling gas-fired boilers to generate steam for electricity production in a “dispatchable and reliable manner.” B&W emphasized that the configuration accelerates project timelines compared to traditional power plant designs, positioning the company to meet surging energy demands from AI-driven data centers. Executives highlighted the partnership as a convergence of industry expertise, with Applied Digital’s leadership expressing confidence in the collaboration’s ability to meet aggressive development schedules.

B&W’s approach is designed to address the urgent need for scalable power solutions in the AI sector, where data centers require high-capacity, reliable energy. The company noted that its streamlined design allows for faster deployment than conventional methods, aligning with broader trends in electrification and digital infrastructure growth. The deal underscores B&W’s strategic focus on leveraging its core competencies in thermal power generation to capture emerging opportunities in the energy transition landscape.

With energy demand rising globally and AI data centers requiring consistent and scalable power, the partnership between B&W and Siemens Energy sets a precedent for how traditional energy firms can pivot toward digital infrastructure. The project is expected to serve as a blueprint for future collaborations, especially in regions where clean and efficient energy solutions are in high demand. The success of this initiative could influence similar projects in North America and beyond.

As the global energy transition accelerates, B&W’s strategic alignment with Siemens Energy signals a broader shift in how power generation is being optimized for digital infrastructure. The company’s ability to deliver rapid, scalable, and reliable energy solutions positions it well to benefit from continued growth in AI-driven energy needs. Investors and industry analysts are closely watching the project’s progress, particularly as it moves into execution in early 2026.