Applied Digital Finalizes New 150MW Lease with CoreWeave

Applied Digital Corporation (NASDAQ:APLD) has finalized a new long-term lease agreement with CoreWeave for an additional 150MW at its Polaris Forge 1 Campus, bringing the total contracted capacity for CoreWeave's AI and high-performance computing initiatives to 400MW. This expansion, coupled with two prior leases, is anticipated to generate approximately $11 billion in total contracted lease revenue, providing significant long-term revenue visibility for APLD in the digital infrastructure sector. The new 150MW data center is projected to be operational by 2027, with earlier phases coming online from Q4 2025.

Analysis

Applied Digital Corporation (APLD) has materially strengthened its forward revenue profile by expanding its partnership with CoreWeave. The finalization of a new lease for an additional 150MW at its Polaris Forge 1 Campus brings the total contracted capacity for CoreWeave to 400MW. This expansion increases the total anticipated contracted lease revenue from these agreements to approximately $11 billion, up from the $7 billion associated with the initial two leases from May. This provides significant long-term revenue visibility, though it is important to note the staggered timeline for delivery: the first 100MW facility is scheduled for Q4 2025, a 150MW building for mid-2026, and the latest 150MW addition for 2027. The strategic value of the North Dakota campus is further highlighted by its design for scalability up to 1 gigawatt and its potential for $2.7 billion in total cost of ownership savings over 30 years, leveraging renewable energy and the local climate. While the core operational and financial news is strongly positive, the source article tempers this by suggesting that other AI-related investments may offer a more favorable risk-reward profile.

Key Decisions for Investors

• Investors should recognize that the expanded CoreWeave agreement significantly enhances Applied Digital's long-term revenue visibility, with approximately $11 billion in contracted revenue providing a clearer path to future earnings.
• It is prudent to closely monitor the company's project execution, as the realization of this revenue is contingent on the successful and timely completion of the data centers scheduled from late 2025 through 2027.
• Consider the strategic value of the Polaris Forge 1 Campus, whose scalability to 1 gigawatt and inherent cost efficiencies position APLD to capture further demand in the high-performance computing and AI infrastructure market.