Applied Digital to break ground on $3 billion AI data center in North Dakota

DALLAS - Applied Digital Corporation (NASDAQ:APLD), whose stock has surged over 250% in the past year according to InvestingPro data, announced plans to break ground in September 2025 on Polaris Forge 2, a $3 billion, 280-megawatt AI data center near Harwood, North Dakota. The company, currently valued at $3.68 billion, appears slightly overvalued based on InvestingPro’s Fair Value analysis.

The facility, which will have initial capacity in 2026 and reach full capacity in early 2027, is designed with the ability to scale beyond its initial 280MW capacity, according to a company press release. This expansion comes as analysts tracked by InvestingPro anticipate significant sales growth, with revenue projected to more than double in fiscal year 2026.

Applied Digital has contracted more than 900 acres for the campus and secured power through Cass County Electric Cooperative. The proposed development initially includes two facilities with capacity for future expansion.

The company stated it is in advanced negotiations with a U.S.-based investment-grade hyperscaler for the campus. Once fully operational, the site is expected to employ more than 200 full-time employees, in addition to long-term contractors.

"The demand for AI capacity continues to accelerate, and North Dakota continues to be one of the most strategic locations in the country to meet that need," said Wes Cummins, CEO of Applied Digital.

The new project builds on the company’s existing Polaris Forge 1 campus in Ellendale, North Dakota. Applied Digital cited the state’s abundant energy, available land, and pro-business climate as factors in its expansion decision.

North Dakota Governor Kelly Armstrong noted that Applied Digital has invested in workforce housing and created local partnerships in Ellendale, expressing enthusiasm for the company’s expansion to Harwood.

Power for the facility will be provided through Cass County Electric Cooperative, with Minnkota Power Cooperative serving as the generation and transmission provider.

The groundbreaking is scheduled to take place next month as the company moves forward with site development.

In other recent news, Applied Digital Corp. reported its financial results for the fourth quarter of 2025, surpassing earnings per share (EPS) expectations with a reported EPS of -$0.03 against the anticipated -$0.14. However, the company’s revenue for the quarter fell short, reaching $38 million compared to the forecasted $42.07 million. Additionally, Applied Digital has doubled its Series G preferred stock offering to $300 million, amending its preferred equity purchase agreement to provide further capital for the development of its Polaris Forge I data center in Ellendale, North Dakota. The amendment also removed a previous cap on the aggregate purchase price for any single issuance. Craig-Hallum has raised its price target for Applied Digital to $18 from $12, maintaining a Buy rating. This adjustment was influenced by the company’s recent 150MW expansion. These developments highlight significant financial and strategic moves by Applied Digital Corp.

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