TLDR
- Applied Digital (APLD) stock jumped 48.46% after signing two 15-year lease deals worth $7 billion with AI company CoreWeave
- The agreements will provide 250 megawatts of data center capacity at Applied Digital’s Ellendale, North Dakota campus
- CoreWeave has an option to access an additional 150 MW of capacity, making the total potential 400 MW
- Both companies are backed by Nvidia, which holds 7.7 million shares of Applied Digital and 24.2 million shares of CoreWeave
- Applied Digital expects to deliver the first 100 MW by Q4 2025, with remaining capacity online by mid-2026
Applied Digital shares rocketed 48.46% on Monday, closing at $10.14 per share. The surge came after the company announced a massive $7 billion deal with AI infrastructure provider CoreWeave.
The agreement consists of two separate 15-year lease contracts. Under these deals, Applied Digital will provide 250 megawatts of critical IT load capacity at its Ellendale, North Dakota data center campus.
CoreWeave will use this space to host its artificial intelligence and high-performance computing infrastructure. The deal represents a major win for Applied Digital, which reported just $53 million in revenue during its most recent quarter.
📣 #BREAKINGNEWS: Applied Digital Secures 250MW Lease with @CoreWeave, the AI Hyperscaler: This 15-year deal at our #NorthDakota #AI Data Center Campus is projected to generate $7B and will power the next wave of AI + HPC.
🏗️ Our Ellendale HPC DC is built to scale to 1GW and is… pic.twitter.com/gGwSb1v92D— Applied Digital (@APLDdigital) June 2, 2025
The $7 billion figure spans the entire 15-year contract period. This puts Applied Digital on track for substantial revenue growth compared to its current financial position.
CoreWeave also secured an option for an additional 150 MW of capacity at the same location. This brings the total potential capacity to 400 MW, making Ellendale a major hub for AI computing operations.
Nvidia Connection Links Both Companies
Both Applied Digital and CoreWeave share a common investor: Nvidia. The chip giant holds approximately 7.7 million shares of Applied Digital and 24.2 million shares of CoreWeave as of March 31.
Nvidia’s investment makes sense given CoreWeave’s business model. The company operates data centers specifically designed for AI workloads using Nvidia’s specialized chips.
This creates a tight ecosystem where Nvidia provides the hardware, CoreWeave operates the infrastructure, and Applied Digital provides the physical space. CoreWeave’s stock also climbed about 8% on Monday following the announcement.
Timeline and Capacity Details
Applied Digital designed its Ellendale campus with AI workloads in mind. The facility offers access to low-cost energy, which is crucial for power-hungry AI operations.
The company plans to deliver the first 100 MW of data center capacity by the fourth quarter of 2025. The remaining 150 MW is scheduled to come online by mid-2026.
Applied Digital emphasized the campus’s strategic advantages, including its prime location and AI-focused design. The facility was built for rapid deployment and efficient operations.
The phased rollout allows CoreWeave to begin operations quickly while Applied Digital completes the full buildout. This approach reduces risk for both companies while ensuring steady revenue flow.
CoreWeave provides clients with access to specialized data centers for developing AI models. The company’s facilities are equipped with Nvidia’s latest chips designed for machine learning and AI training.
The deal positions Applied Digital as a major player in AI infrastructure hosting. The 15-year contract terms provide long-term revenue visibility in a rapidly growing market.
Applied Digital’s stock performance reflects investor enthusiasm for the AI data center space. The company’s ability to secure such a large contract validates its infrastructure strategy.
The Ellendale campus represents Applied Digital’s bet on North Dakota as a data center hub. The state offers reliable power grid access and favorable operating conditions for large-scale computing operations.
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