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Investing.com -- Applied Digital Corporation (NASDAQ:APLD) shares rose 13% following the announcement of a significant lease agreement for its upcoming AI data center in North Dakota. The company disclosed two approximately 15-year lease contracts with CoreWeave, a major player in artificial intelligence (AI) and high-performance computing (HPC), to host infrastructure at Applied Digital’s Ellendale data center campus.
The leases, which will provide CoreWeave with 250 megawatts (MW) of critical IT load, are anticipated to generate roughly $7 billion in revenue for Applied Digital over their term. This move is expected to solidify Applied Digital’s emerging role as a key provider of infrastructure for next-generation AI and HPC applications. Furthermore, CoreWeave retains the option to expand its capacity by an additional 150 MW at the same location, potentially scaling up the campus’s capabilities to meet growing AI and HPC demands.
Wes Cummins (NYSE:CMI), Chairman and CEO of Applied Digital, expressed confidence in the partnership with CoreWeave and the company’s strategic position to yield substantial returns while catering to the evolving needs of AI and HPC sectors. The Ellendale campus is one of the most ambitious data center projects in North America, designed specifically for high-density computing and capable of scaling up to 1 gigawatt in the future.
The first 100 MW data center dedicated to CoreWeave is slated to be operational by the fourth quarter of 2025, with a second 150 MW facility expected to be ready by mid-2026. A third building, also at 150 MW, is currently in the planning phase, with an anticipated completion date in 2027. Applied Digital aims to leverage the energy-efficient climate and strategic location of the Ellendale campus to meet the rapid capacity demands and establish itself as a leader in the AI data center space.
Applied Digital specializes in developing and operating state-of-the-art data centers that support a range of services, including cloud solutions as a service (CSaaS) and GPU-as-a-Service, to accommodate AI/ML, blockchain, and other HPC workloads. With this latest development, the company is poised to expand its footprint in the digital infrastructure market.
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