Babcock & Wilcox has announced a strategic partnership with Denham Capital’s Sustainable Infrastructure division to deliver new power generation solutions targeting the rising energy demands of data centers in the US and Europe. This partnership will focus on converting existing coal-fired power plants to natural gas and integrating back-end environmental technologies, according to both companies.
The agreement responds to projections that US data centers will require 65 gigawatts of power from 2025 to 2028—about 45 gigawatts more than current capacity, Babcock & Wilcox reports. With most new power projects in the US facing a median five-year interconnection timeline and over 2,200 gigawatts of projects in queues, both companies plan to leverage existing interconnected assets to meet immediate needs.
Under the partnership, Babcock & Wilcox will provide engineering expertise and technology scope, while Denham will lead project development, financing, and market strategy. The technical objective centers on rapid conversion of coal-fired plants to natural gas to deliver reliable, flexible, and cost-effective power—serving as a bridge solution until renewable sources can catch up with data center electricity demand.
Denham Capital states that its partnership with Babcock & Wilcox combines Denham’s “expertise in developing, building and operating large-scale power plants across six different continents” with Babcock & Wilcox’s “many decades of industry-leading experience in coal power generation and the conversion of coal-fired power plants to use natural gas.” The companies also note that substantial investments will be made to support this conversion effort, including the integration of environmental controls for cleaner operations.
The target market for these power generation initiatives includes hyperscale data centers, colocation providers, and cloud computing facilities. The companies indicate the solution will also be applicable to similar large-scale, electricity-intensive operations in other sectors.
Justin DeAngelis, Global Head of Sustainable Infrastructure at Denham Capital, stated, “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.” He added, “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, Babcock & Wilcox Chairman and Chief Executive Officer, said, “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.”
Source: Babcock & Wilcox
