Applied Digital (NASDAQ: APLD) is making waves in the tech and financial markets after sealing a massive 15-year lease agreement worth $7 billion with CoreWeave. The partnership focuses on high-performance computing (HPC) infrastructure—a hotbed of innovation in the AI industry. As a result, APLD stock surged in early June 2025, gaining attention from investors looking for long-term growth potential.
This deal isn’t just big—it’s transformational. Applied Digital is repositioning itself from a niche data center operator to a heavyweight in the AI and HPC space. And for those following APLD stock, the timing couldn’t be better.
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APLD Stock Strengthens After Landmark CoreWeave Partnership
The recent spike in APLD stock comes on the heels of Applied Digital’s announcement that it has secured a 15-year, $7 billion lease deal with CoreWeave. CoreWeave, known for renting out powerful NVIDIA-backed GPUs for AI use cases, will lease infrastructure from Applied Digital to support its expanding HPC operations.
The agreement includes multiple data center locations operated by Applied Digital, all optimized for energy efficiency and scalability. As AI and machine learning workloads soar, the need for such custom-built, high-performance infrastructure is reaching new heights—and Applied Digital is stepping up.
Key points of the deal:
- Duration: 15 years
- Value: $7 billion total lease value
- Partner: CoreWeave, a leading AI cloud provider
- Focus: High-performance computing and GPU-intensive workloads
This long-term deal brings stable recurring revenue to Applied Digital and bolsters confidence in the long-term viability of APLD stock.
Strengthening Financials: A New Chapter for Applied Digital
In recent months, Applied Digital has taken several bold financial steps to support its rapid expansion into AI infrastructure. These moves have not only strengthened its balance sheet but also reinforced investor trust in the long-term outlook of APLD stock.
Recent Highlights:
- $160 million strategic financing: Raised from institutional and accredited investors to support data center expansion and infrastructure enhancements.
- $150 million equity facility: Set up to fund the development of its Ellendale HPC campus and future projects.
- Multiple 100MW+ projects underway: These are tailored for hyperscalers and AI firms, positioning Applied Digital to dominate the HPC data center market.
These moves reflect a proactive growth strategy, essential in an environment where demand for AI processing power is increasing exponentially.
Inside the Ellendale HPC Campus: A Game-Changer for APLD Stock
Applied Digital’s Ellendale HPC campus in North Dakota is at the heart of the CoreWeave lease deal. The state-of-the-art facility spans more than 369,000 square feet and is being designed with liquid-cooled infrastructure to support massive AI and HPC workloads.
What Makes Ellendale Stand Out?
- Energy-Efficient Cooling: Advanced liquid-cooled designs reduce energy use and support dense GPU workloads.
- Stranded Power Advantage: The location benefits from unused power sources, lowering operational costs.
- Expansion Capability: Up to 400MW of additional capacity planned to support future demand from major tech clients.
The Ellendale campus will begin service in the second half of 2025. Once operational, it will immediately start contributing to revenue thanks to pre-signed long-term leases.
Why APLD Stock Is Gaining Momentum Among Investors
The AI infrastructure boom is in full swing, and APLD stock is well-positioned to benefit. This $7 billion lease not only secures long-term revenue but also proves that Applied Digital can compete with bigger, more established players in the HPC arena.
Investors are drawn to:
- Long-Term Revenue Visibility: 15 years of committed income.
- AI and Cloud Tailwinds: Rising demand for AI workloads is creating unprecedented demand for custom data centers.
- Operational Scaling: Rapid build-out of multiple facilities ensures continued growth.
- Diversification: By focusing on leasing instead of mining or traditional data hosting, Applied Digital aligns itself with future-ready tech needs.
The stock’s momentum reflects both market excitement and long-term belief in the company’s strategic direction.
The Bottom Line: APLD Stock Is Entering a New Era
The $7 billion lease deal with CoreWeave could be the turning point that propels Applied Digital into the top tier of AI infrastructure providers. With state-of-the-art facilities, long-term financial backing, and major partnerships, APLD stock is not just reacting to market hype—it’s being reshaped by strategic execution.
Whether you’re a current investor or someone keeping an eye on the AI infrastructure boom, this may be the right time to watch APLD stock closely.
Explore this opportunity, assess your investment goals, and consider whether APLD stock fits into your long-term strategy.
Disclaimer: This post is for informational purposes only and does not constitute financial or investment advice. Please consult a licensed advisor before investing.