Applied Digital Secures $7 Billion, 15-Year Lease Agreement with CoreWeave
Jun 2, 2025 (5 days ago)
Positive
Applied Digital (APLD) has signed a transformative 15-year lease agreement with CoreWeave, worth $7 billion, to deliver 250 MW of IT power to CoreWeave's AI and HPC data center in North Dakota.
$7 Billion Lease Agreement with CoreWeave
- APLD signed a 15-year lease agreement with CoreWeave, an AI hyperscaler, to deliver 250 MW of IT power to CoreWeave's Ellendale, North Dakota, AI and HPC data center. The deal includes an option for an additional 150 MW, potentially increasing the total to 400 MW1
- The agreement is expected to generate approximately $7 billion in total revenue over the lease term, averaging nearly $467 million annually3
Rollout Plan and Capacity Expansion
- The first 100 MW facility is expected to go live in Q4 2025, followed by another 150 MW in mid-2026. CoreWeave also has the option to add another 150 MW, bringing the potential total to 400 MW out of the site's planned 1-gigawatt capacity3
- The location in North Dakota offers advantages such as fast build timelines, affordable power, and a cool climate that reduces operating costs3
Strategic Implications for APLD
- The long-term leases provide APLD with predictable, high-visibility cash flows, de-risking its business model and validating its pivot to large-scale AI data centers amid soaring demand for GPU-backed cloud services1
- The deal solidifies APLD's position as a foundational infrastructure provider in the rapidly expanding AI-data-center space2
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