Applied Digital Corporation (NASDAQ: APLD) had a notable surge in its stock price, as it increased by 29.27% to close the previous session at $13.25. This dramatic rise came after the business announced that it had inked two long-term leases with AI hyperscaler CoreWeave, marking a significant turning point in its expansion plan.
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Lease Agreement with CoreWeave for 15 Years
Two roughly 15-year leasing agreements have been signed by Applied Digital and CoreWeave to supply 250 megawatts (MW) of vital IT load for high-performance computing (HPC) and artificial intelligence (AI) infrastructure. One of the most ambitious data center expansions in North America, the Ellendale site in North Dakota, is the subject of these leases. Over the lease term, Applied Digital expects to generate an estimated $7 billion in revenue.
CoreWeave still has the opportunity to access an additional 150 MW at the Ellendale site in addition to the verified capacity. This strengthens Applied Digital’s already solid reputation as a major infrastructure supplier in the AI industry and positions the campus as a scalable hub for future growth in AI and HPC.
Ellendale Campus: Designed with Next-Gen Computing in Mind
The Ellendale facility is engineered to support high-density computing, capable of scaling up to 1 gigawatt of power over time. The campus’s design focuses on rapid deployment, access to low-cost energy, and efficient operations—factors critical for clients operating in AI and HPC sectors. Applied Digital anticipates delivering the first 100 MW data center for CoreWeave by Q4 2025, followed by a second 150 MW facility by mid-2026. A third 150 MW building is also in the planning phase, targeted for service readiness in 2027.
Strategic Expansion into AI Infrastructure
These long-term lease agreements underscore Applied Digital’s strategic commitment to advanced compute infrastructure. APLD aims to support the surging demand for AI services while cementing its role as a leading force in the evolving digital ecosystem. The Ellendale project, with over 1 gigawatt of potential power capacity under study, is set to become a foundational platform for future innovations in AI and high-performance computing.
