Babcock & Wilcox (B&W) is addressing the rapid and massive growth in energy demand created by the rise of AI and data centers in the U.S. and globally. How? It is partnering with Denham Capital to repower or convert coal plants to natural gas. The goal is to fuel the AI revolution with reliable, scalable energy. The partnership reflects B&W’s strategy for organic growth and long-term infrastructure investment. As gas turbine supply chains face multi-year delays, B&W’s ability to deliver fast, scalable energy solutions is a key differentiator in a rapidly evolving market.
“Our BrightLoop chemical looping tech can be used to convert natural gas, coal and other fuels to energy while capturing CO2,” said B&W Chairman & Chief Executive Officer Kenny Young. “It’s a ready-to-deploy, reliable solution with the potential to lead the way in the energy transition.”
How much demand is there from AI? B&W predicts that U.S. data centers will consume 65 GW of power between 2025 and 2028, about 45 GW more than existing capacity can accommodate. Couple that with the fact that existing interconnected assets must fill the void given the five-year median interconnection timeline for U.S. power projects, amid 2,200 GWs of projects in interconnection queues. In response, B&W will supply engineering and technology scope for projects that Denham will fund. Beyond the U.S., both parties see plenty of opportunities in Europe, too.
B&W believes that natural gas offers cost-effective and rapid deployment to support the development of data centers until renewables can match the pace of electricity demand growth.
“Data centers have created an unprecedented and immediate demand for power generation, the likes of which we have not seen in nearly two decades,” said Justin DeAngelis, Global Head of Sustainable Infrastructure at Denham Capital. “Time-to-power is a key focal point for data center developers and hyperscalers, and this partnership is one differentiated tool we are looking to utilize to meet market needs.”
