Applied Digital Surges 10% on AI Data Center Milestone
Company fully energizes first 100 MW building at its Polaris Forge campus, a key step in a 400 MW contract with CoreWeave and part of a larger $16 billion revenue pipeline.
Shares of Applied Digital Corp. (NASDAQ: APLD) jumped more than 10% in Monday trading after the company announced a critical operational milestone, signaling its growing capability to power the high-demand artificial intelligence sector.
Applied Digital confirmed it has completed and fully energized the first 100-megawatt (MW) building at its Polaris Forge 1 AI Factory campus in North Dakota. The stock rose sharply on the news, climbing 10.38% to $23.28 by midday, reflecting investor optimism about the company's execution on its ambitious data center projects.
The development marks the completion of the first of three contracted buildings for CoreWeave, a specialized cloud provider for large-scale AI workloads. This facility is a key component of a broader 400 MW, long-term lease agreement with CoreWeave, cementing Applied Digital's role as a significant infrastructure provider in the burgeoning AI industry.
“The successful and on-time completion of this facility is a testament to the dedication and expertise of our team,” said Wes Cummins, CEO and Chairman of Applied Digital. “This achievement not only brings our first 100 MW of high-performance computing capacity online but also represents a major step forward in realizing our contracted revenue streams.”
The announcement provides tangible evidence of Applied Digital's ability to deliver complex, high-capacity data centers tailored for the intensive computational demands of AI and high-performance computing (HPC). The Polaris Forge 1 campus is designed to support the next generation of AI hardware, which requires immense power and specialized cooling infrastructure.
Beyond the immediate milestone, the company underscored the scale of its growth pipeline, referencing a recently executed lease for its Polaris Forge 2 campus that brings its total contracted revenue to approximately $16 billion. This substantial backlog provides long-term visibility and highlights the immense demand for specialized AI data center capacity.
With a market capitalization approaching $5.9 billion, Applied Digital is positioning itself as a key builder of the foundational infrastructure powering the AI revolution. The company's focus on HPC data centers distinguishes it from traditional data center operators and aligns it directly with one of the technology sector's most powerful secular growth trends.
Wall Street has taken a bullish stance on the company, with ten analysts maintaining a 'Buy' or 'Strong Buy' rating and an average price target of $43.70, suggesting significant upside from current levels. Investors are betting that as companies like CoreWeave expand to serve the insatiable demand from AI developers, Applied Digital's specialized infrastructure will become increasingly valuable.
The successful energizing of the 100 MW facility de-risks a significant portion of Applied Digital's development pipeline and provides a clear proof point for its operational capabilities. As the company continues to build out the remaining 300 MW for CoreWeave and advances its other projects, the market will be closely watching its ability to maintain its development timeline and capitalize on the surging demand for AI infrastructure that is reshaping the technology landscape.