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Rolls-Royce CEO says major hyperscaler nuclear deal is imminent as data center demand soars
['Elsa Ohlen']
International: Top News And Analysis
CEO Tufan Erginbilgic said Thursday the company is already discussing power systems and small modular reactors with hyperscaler data center operators, and expects to seek internal approval for a major customer framework agreement.
"Early next week, in [the] investment committee, we are going to sign another big hyperscaler sort of deal," Erginbilgic said in a call with analysts.
In power generation, Rolls-Royce is seeing increasing demand for both backup engines and gas engines for use as a prime power source for data centers.
It sees free cash flow of £3.8 billion to £4 billion, up from between £3.6 billion and £3.8 billion previously.
She also pointed to growing opportunities from higher defense spending, citing long-term commitments under the U.K.'s defense investment plan and NATO's push for greater military investment.