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← Applied Digital Corporation
Wed, Mar 4, 2026

Applied Digital guarantees Base Electron 1.2 GW power plant design-build contract

Source document ↗

Key points

  • On February 26, 2026 Applied Digital unconditionally guaranteed Base Electron, Inc.'s performance under a design-build agreement with The Babcock & Wilcox Company for a power generation facility with expected nameplate capacity of approximately 1.2 GW.
  • The facility is anticipated to support data center power needs, potentially supplying Applied Digital's own campuses under future separate power supply agreements.
  • Maximum exposure is effectively limited by the design-build agreement's anticipated total contract price of approximately $2.4 billion.
  • Applied Digital may terminate the guarantee upon a Base Electron listing, a Base Electron financing of at least $50 million, or payment of a $50 million termination fee by August 1, 2026 ($100 million thereafter).
  • As partial consideration, Base Electron, an independent power producer formed by certain Applied Digital executives, directors and affiliates, will issue Applied Digital 10% of its outstanding equity; the related-party transaction was approved by the audit committee and disinterested directors.