Applied Digital Corporation (NASDAQ:APLD) shares are trading higher on Wednesday after the company signed a lease with a U.S.-based investment-grade hyperscaler for its Polaris Forge 2 Campus.
The campus is currently being built near Harwood, North Dakota.
Details
The deal represents roughly $5 billion in total contracted revenue over an anticipated 15-year term.
Spanning over 900 acres, Polaris Forge 2 is designed for high efficiency, targeting a PUE of 1.18 with near-zero water use.
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The agreement covers 200 megawatts (MW) of critical IT capacity designed to support the hyperscaler's AI and high-performance computing (HPC) operations.
The first 200 MW will be delivered across two buildings, coming online in 2026 and reaching full capacity in 2027, with room for future expansion.
The hyperscaler also has a first right of refusal for an additional 800 MW, encompassing the full 1-gigawatt (GW) expansion potential of the Polaris Forge 2 Campus.
With this lease, Applied Digital's total contracted capacity across its Polaris Forge 1 and 2 campuses in North Dakota has reached 600 MW.
Recent Development Related to Polaris
This month, Chief Executive Wes Cummins confirmed during Applied’s latest earnings call that the company expanded its long-term lease with CoreWeave to 400 megawatts, bringing the total contract value to approximately $11 billion.
Recent Earnings Results
This month, Applied Digital reported first-quarter revenue of $64.22 million, beating analyst estimates of $49.99 million and adjusted loss of three cents per share, beating analyst estimates for a loss of 13 cents per share.
Investors can gain exposure to the stock via Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) and Global X Blockchain ETF (NASDAQ:BKCH).
APLD Price Action: Applied Digital shares were up 0.40% at $32.67 at the time of publication on Wednesday, according to Benzinga Pro data.
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