The stock of Applied Digital (APLD) has erupted in recent days, fueled by a game-changing $7 billion data center lease agreement with CoreWeave, a rapidly growing AI cloud computing company. This landmark deal, announced in early June 2025, positions Applied Digital at the heart of the artificial intelligence infrastructure boom and has sent APLD stock soaring as investors rush to capitalize on the AI gold rush.
Table of Contents
APLD Stock: Riding the Wave of AI Demand
Applied Digital’s stock (APLD) has captured Wall Street’s attention after the company revealed two long-term, 15-year lease agreements with CoreWeave. Under these deals, Applied Digital will deliver 250 megawatts (MW) of critical IT load to host CoreWeave’s AI and high-performance computing (HPC) infrastructure at its Ellendale, North Dakota data center campus. The first 100 MW facility is set to go live in the fourth quarter of 2025, with a second 150 MW facility scheduled for mid-2026. CoreWeave also holds options for an additional 150 MW, potentially expanding the site to a massive 400 MW of AI-focused capacity.
The sheer scale of this agreement—$7 billion in anticipated revenue over 15 years—has electrified the market. APLD stock jumped 48% immediately following the announcement, and the momentum has continued as the implications of the deal become clear. This contract not only secures substantial long-term income for Applied Digital but also validates its strategy of pivoting from crypto mining infrastructure to next-generation AI data centers.
Why the CoreWeave Deal Matters for APLD Stock
Unprecedented Revenue Visibility:
The $7 billion, 15-year lease provides Applied Digital with predictable, recurring revenue, a rarity in the volatile tech sector. This financial stability is a major draw for investors seeking exposure to AI infrastructure without the rollercoaster risk of pure-play AI software companies.
Strategic Partnership with an AI Leader:
CoreWeave has emerged as a key player in the AI cloud space, backed by Nvidia and Macquarie, and recently inked high-profile deals with OpenAI and Galaxy. By partnering with CoreWeave, Applied Digital cements its reputation as an essential provider of the infrastructure powering the AI revolution.
Scalable Growth Potential:
The Ellendale campus is designed for expansion, with over 1 gigawatt of power capacity under review. CoreWeave’s option to expand by another 150 MW means Applied Digital’s revenue and influence could grow even further as AI demand accelerates.
Market Validation:
Wes Cummins, CEO of Applied Digital, called the deal “a major step in cementing Applied Digital’s role in the AI and HPC infrastructure space.” The market agrees—APLD stock’s surge reflects investor confidence that the company is now a central player in the AI infrastructure ecosystem.
The Buildout: What’s Next for Applied Digital and APLD Stock?
Applied Digital’s Ellendale campus, originally built for crypto mining, is being rapidly transformed into a state-of-the-art AI and HPC data center hub. The first 100 MW facility will be operational by late 2025, with the next 150 MW coming online in mid-2026. If CoreWeave exercises its expansion options, a third 150 MW building could be operational as soon as 2027.
This aggressive buildout is backed by significant capital commitments, including $900 million already allocated to the Ellendale site. Applied Digital recently secured $375 million in financing from SMBC to accelerate development, ensuring the company can meet the surging demand for AI infrastructure.
Key Milestones Ahead
- Q4 2025: First 100 MW data center goes live for CoreWeave
- Mid-2026: Second 150 MW facility launches
- 2027 (potential): Third 150 MW expansion if CoreWeave exercises its option
APLD Stock: The New AI Infrastructure Play
The Applied Digital-CoreWeave agreement is more than just a massive lease—it signals a fundamental shift in the data center industry. As AI workloads grow exponentially, companies like CoreWeave are locking in long-term capacity to serve the world’s leading software developers and enterprises. Applied Digital’s ability to deliver scalable, high-performance infrastructure makes it a vital partner in the AI supply chain.
For investors, APLD stock now offers a unique combination of growth, stability, and exposure to the hottest trend in technology. The AI boom is still in its early innings, and Applied Digital’s strategic positioning could translate into outsized returns as demand for AI infrastructure continues to skyrocket.
Why Watch APLD Stock Now?
- Massive, locked-in revenue from CoreWeave
- Potential for further expansion and new deals
- Rapidly growing AI and HPC market
- Strong financial backing and industry partnerships
- Market momentum and rising investor interest
Conclusion: APLD Stock at the Center of the AI Surge
The $7 billion CoreWeave deal has transformed Applied Digital from a niche data center operator into a cornerstone of the AI infrastructure landscape. With long-term revenue secured, scalable growth potential, and a strategic partnership with one of AI’s fastest-growing companies, APLD stock is now firmly on the radar of investors seeking to ride the next wave of technological innovation.
Don’t miss the opportunity to follow APLD stock as it powers the backbone of artificial intelligence. Stay ahead of the curve—track the latest developments, watch for expansion updates, and consider how Applied Digital’s evolution could impact your investment strategy.