Applied Digital Secures $2.4 Billion Power Deal and Expands 400 MW AI Capacity
Applied Digital has contracted Babcock & Wilcox to deliver a $2.4 billion power plant to Base Electron, ensuring energy supply for its AI factory campuses. The company boasts a 400 MW HPC capacity fully contracted to CoreWeave with 100 MW operational and a 4.3 GW development pipeline could add $124 in value per share.
1. $2.4 Billion Power Plant Contract with Babcock & Wilcox
Applied Digital has signed a full notice to proceed with Babcock & Wilcox for a $2.4 billion power generation facility that will supply Base Electron’s AI factory campuses, covering design, engineering and construction to ensure dedicated energy delivery.
2. CoreWeave HPC Capacity Expansion
The company’s North Ellen facility now features 400 MW of specially designed high-performance computing capacity fully contracted to CoreWeave, with the first 100 MW operational since November 2025, 150 MW slated for mid-2026 and the final 150 MW in 2027.
3. 4.3 GW Development Pipeline and Valuation Impact
Applied Digital’s active development pipeline stands at 4.3 GW, with projects that could boost total capacity above 5 GW and drive approximately $124 of incremental shareholder value per share, supporting the company’s long-term growth outlook.