Applied Digital shares surge on new AI data center lease with CoreWeave
Investing.com
Published Jun 02, 2025 08:19AM ET
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.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.