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Applied Digital (NASDAQ:APLD) has secured two, 15-year lease agreements with the artificial intelligence hypserscaler CoreWeave (NASDAQ:CRWV), which is expected to generate $7B in total revenue over the lifetime of the deals, the companies announced Monday.
Applied Digital shares surged 19% during early trading. CoreWeave climbed 4%.
Under the agreement, Applied Digital plans to deliver 250 megawatts of IT critical load to host CoreWeave’s AI and high-performance computing infrastructure at its data center campus in Ellendale, N.D. CoreWeave also retains the option to access an additional 150 MW of critical IT load at the campus.
“As demand for AI accelerates exponentially, we believe that we are uniquely positioned to deliver substantial returns while supporting the evolving and dynamic needs of these rapidly evolving sectors,” said Applied Digital CEO Wes Cummins. “We view CoreWeave as an ideal partner as we accelerate our growth and innovation.”
The Ellendale data center was engineered to eventually provide up to 1 gigawatt. Applied Digital expects the first 100 MW data center for CoreWeave to be ready for service in the fourth quarter of this year. The second building, which is expected to house a 150 MW data center, is under construction and is expected to be ready for service in the middle of 2026. A third 150 MW building is slated to enter service sometime in 2027.
“Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure,” Cummins added.