Applied Digital's CoreWeave Deal Just Became An $11 Billion AI Power Play

Applied Digital Corp (NASDAQ:APLD) has inked one of the biggest capacity expansions yet in the AI data center race.

Chief Executive Wes Cummins confirmed during Applied's latest earnings call that the company expanded its long-term lease with CoreWeave Inc (NASDAQ:CRWV) to 400 megawatts, bringing the total contract value to approximately $11 billion.

• Track APLD stock here.

700 Megawatts Under Construction

Applied Digital currently has “700 megawatts under construction,” Cummins told investors. The company has also shortened its construction cycle dramatically.

"We’ve been able to shorten our construction timeline to twelve to fourteen months from twenty-four months, which was an important step," he added, noting that the speed advantage is helping Applied capture opportunities faster than traditional developers.

The expansion includes additional capacity at the company's flagship Polaris Forge campus. The next phase — Polaris Forge Two — is already under development, with the first building expected online in late 2026 and full scale reached by 2027.

Read Also: Applied Digital (APLD) Stock Is Surging Friday: What’s Going On?

Flooded With Power Opportunities

Cummins said the company is “getting flooded with power opportunities.” In recent weeks, Applied has seen over 50 different sites in what Cummins calls a “big grab for power and for land.”

The CoreWeave deal is expected to add a stable base of recurring revenue as the company builds out additional projects. These leases, along with what's under construction, should support roughly half a billion dollars in annual net operating income.

Applied expects to reach its stated goal of $1 billion of NOI run rate within five years, Cummins added.

Read Next:

• Why This Applied Digital Analyst Doubles Price Target

Image: Shutterstock