Applied Digital Secures Major Hyperscaler Deals, Plans $3B Campus
Applied Digital, a leading data center company, has secured significant deals with two major hyperscalers in North America. The company is also constructing a new $3 billion center in North Dakota, driving its stock up by around 250% year to date.
APLD recently announced a substantial deal with AI hyperscaler CoreWeave, securing 250 megawatts of data center capacity. This agreement is projected to generate approximately $7 billion in revenue over the next 15 years. While the identity of the second investment-grade hyperscaler customer is not yet public, the company's CEO is optimistic about the future, aiming for $1 billion in operating profit within the next three to five years.
The current market cap of Applied Digital stands at $7 billion, suggesting a favorable multiple on its potential future profits. The company's prospects have been buoyed by Microsoft's recent multibillion-dollar deal with Nebius for data center capacity. Moreover, Applied Digital's secured power sources are particularly valuable given the potential scarcity of data center capacity due to power shortages.
With two major hyperscaler deals and a new $3 billion data center campus in the works, Applied Digital's stock has surged by around 250% this year. The company's ambitious profit targets and valuable power sources position it well in the competitive data center market.
Read also:
- Regensburg Customs Crackdown Nets 40+ Violations in Hotel Industry
- Mural at blast site in CDMX commemorates Alicia Matías, sacrificing life for granddaughter's safety
- Germany Boosts EV Charging: 1,000 Fast-Charging Points on Motorways by 2026
- Albanese Invites LuLu Group to Australia as Free Trade Deal Takes Effect
