Applied Digital Corporation (NASDAQ:APLD) is making waves in the AI infrastructure space! Analysts are highlighting APLD as a top AI stock to watch, and recent developments solidify its position in the market.
Massive Lease Agreement with CoreWeave
On August 29th, Applied Digital announced a finalized lease agreement with CoreWeave for a substantial 150MW at its Polaris Forge 1 Campus in Ellendale, North Dakota. This new long-term lease, coupled with two initial ~15-year leases executed earlier in May, brings the total contracted capacity to an impressive 400MW for CoreWeave's AI and high-performance computing (HPC) endeavors.
$11 Billion in Contracted Revenue
The combined value of these three agreements is projected to generate approximately $11 billion in total contracted lease revenue. This includes the $7 billion already secured from the initial two leases. The new 150MW data center will be housed in the third building of the Polaris Forge 1 Campus, with a projected service date in 2027.
Polaris Forge 1 Campus Expansion
The first 100MW data center from the initial May agreements is on track to be operational in Q4 2025. The second 150MW building is currently under construction and is expected to come online in mid-2026. The Polaris Forge 1 Campus is strategically designed to eventually scale up to a massive 1 gigawatt.
Sustainable and Cost-Effective Design
A recent study by Applied Digital estimates that the campus's innovative design, which leverages renewable power sources and North Dakota's cool climate, could result in significant cost savings of approximately $2.7 billion over a 30-year period by optimizing the total cost of ownership.
Applied Digital Corporation (NASDAQ:APLD) specializes in designing, developing, and operating digital infrastructure solutions tailored for the HPC and AI industries across North America.
Disclaimer: While APLD shows promise, investors should consider various AI stocks with potentially greater upside and lower risk profiles. Always conduct thorough research before making investment decisions.