Nauman Khan of GuruFocus reports that Applied Digital has secured deals expected to generate about $7 billion in rental revenue over 15 years, with fixed lease payments and annual escalators. The agreements support the company’s expansion into advanced computing. Nvidia backed CoreWeave will deploy AI and high-performance hardware at Applied Digital’s new Ellendale, North Dakota campus, which will supply 250 MW of IT load and is scalable to 400 MW. The leases cover two data blocks, with an option for a third. Khan writes:
Applied Digital shares surged about 48% Monday after the company signed two long-term lease agreements with CoreWeave for artificial intelligence data centers. […]
Under the deals, Applied Digital expects roughly $7 billion in rental revenue over an approximately 15-year term, with lease payments set upfront and an annual escalator regardless of project costs.
Chief Executive Wes Cummins said the agreements advance the company’s strategic push into advanced compute infrastructure. […]
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