- U.S. data centers expected to consume 65 gigawatts (GW) of power between 2025 and 2028, about 45 GW more than existing capacity can accommodate

- Existing interconnected assets help fill the void given the five-year median interconnection timeline for U.S. power projects, amid 2,200 GWs of projects in interconnection queues

- B&W will supply engineering and technology scope for the projects, with Denham leading development, financing and market expertise

Babcock & Wilcox Enterprises, Inc. (“B&W”) (NYSE: BW) announced today the signing of a strategic partnership agreement with Denham Capital’s Sustainable Infrastructure arm (“Denham”) to jointly pursue opportunities to generate power to support the increased demand from data centers in the U.S. and Europe. This will include technologies for coal power generation or natural gas conversion projects as well as back-end environmental technology.

Through the partnership, substantial investments will be made to convert coal-fired power plants to cleaner natural gas solutions, which represent a crucial bridge for the clean energy transition. 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.

The partnership combines Denham’s expertise in developing, building and operating large-scale power plants across six different continents, and B&W’s many decades of industry-leading experience in coal power generation and the conversion of coal-fired power plants to use natural gas. Denham and B&W are ideally positioned to build the sustainable infrastructure required to meet the growing demand for reliable, flexible and affordable power solutions for data center developers.

Justin DeAngelis, Global Head of Sustainable Infrastructure at Denham Capital, commented, “Data centers have created an unprecedented and immediate demand for power generation, the likes of which we have not seen in nearly two decades. 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.”

“We are delighted to partner with B&W to offer reliable, fast, low-cost and sustainable power solutions to the data center market, leveraging B&W’s nearly 160 years of expertise in power boilers, and bringing Denham’s 10 GW of experience in developing, constructing or operating power generation,” DeAngelis said. “Given the scale of this opportunity, Denham will shortly announce a dedicated portfolio company focused on delivering these solutions. It is vital we leverage existing power fleets, decarbonize, and increase the quality and security of our power generation systems.”

Kenneth Young, B&W Chairman and Chief Executive Officer, noted that B&W’s experience and technologies, combined with Denham’s power sector expertise, position the two companies to capitalize on the incredible opportunities to serve this growing market.

“This partnership brings two well-established, experienced teams together to quickly and effectively identify opportunities to leverage underutilized coal-fired power plants to provide affordable, reliable power for large-scale data centers,” Young said. “The rapid growth of AI and datacenters is driving demand for new, dedicated electrical generation capacity for these facilities, and we see a tremendous opportunity to help customers meet their energy needs affordably and efficiently. With our vast experience and our broad suite of both traditional and new technologies, we are well-positioned to support the power demand from data centers and global AI growth now and in the future.”

As a worldwide supplier of combustion and environmental technologies for a wide variety of fuels, B&W has the expertise and experience to plan, manage and execute large and complex power generation upgrades and fuel conversion projects as well as providing the continued parts and services to maintain these fleets for years to come.

About B&W

Headquartered in Akron, Ohio, B&W is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow B&W on LinkedIn and learn more at www.babcock.com.

About Denham Sustainable Infra Management LP

Founded in 2004, Denham Capital is a global Energy Transition investment firm, having raised more than $12 billion (which includes funds now managed by Trace Capital) of capital across multiple sectors. Specializing in private equity, infrastructure and credit, we invest in sectors that are central to the economic and resource transitions happening globally. We deliver the metals and minerals and sustainable infrastructure needed for today and tomorrow.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to a strategic partnership agreement with Denham Capital to convert existing coal plants to power data centers in the U.S. and Europe. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

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