Major Partnership Signals Growth in AI Infrastructure
Applied Digital has announced a significant 15-year agreement with AI infrastructure company
CoreWeave to deliver 250 megawatts (MW) of critical IT load at its data center campus in Ellendale, North Dakota. The deal, valued at approximately $7 billion over the contract period, represents a major milestone for both companies in the rapidly expanding artificial intelligence infrastructure market[1][3].
Phased Development Timeline
The agreement involves the construction of multiple facilities with a clear deployment schedule:
- The first 100 MW data center is expected to be operational by Q4 2025
- The second 150 MW facility is currently under construction and scheduled for completion by mid-2026
- CoreWeave has an option to add an additional 150 MW, which would be ready by 2027 if exercised[2][3]
"We believe these leases solidify Applied Digital's position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," said Wes Cummins, chairman and CEO of Applied Digital[3].
Strategic Expansion Potential
While the Ellendale campus is currently designed to host 400 MW of critical IT load, Applied Digital has indicated it could potentially expand to one gigawatt of total power capacity to support additional infrastructure development. This positions the site among North America's most ambitious data center projects[3][4].
The deal comes at a time of exponential growth in demand for
AI computing resources, with specialized infrastructure providers like CoreWeave playing a critical role in the development and deployment of advanced AI applications and services[4].
Market Impact
Following the announcement, Applied Digital's stock (APLD) saw significant trading activity as investors responded positively to the long-term revenue visibility provided by the agreement. The approximately $467 million in annual revenue this deal represents establishes a substantial recurring revenue stream for Applied Digital[3][4].
This partnership highlights the growing importance of purpose-built infrastructure for AI computing and positions North Dakota as an emerging hub for data center development focused on artificial intelligence and high-performance computing workloads[1][3].
