Applied Digital Corp.

Applied Digital Corporation

Overview

Applied Digital Corporation is a U.S.-based designer, developer, owner, and operator of large-scale, purpose-built data centers engineered for high-performance computing (HPC) workloads, including AI and machine-learning applications. Its facilities are marketed as AI factories and are leased or hosted under long-term agreements with investment-grade hyperscalers and other compute customers.

Business model and structure

The company designs, builds, and operates next-generation data centers with high-density, liquid-cooled configurations and a standardized, repeatable design across sites. It reports two operating segments:

• HPC Hosting Business
• Data Center Hosting Business

Reportable segments

• HPC Hosting Business: design, construction, ownership, and operation of data centers optimized for high-density GPU and accelerated-compute infrastructure for AI, ML, and HPC workloads.
• Data Center Hosting Business: energized infrastructure that allows customers to deploy their own equipment based on power needs (legacy crypto-mining hosting, now a smaller, declining part of the business).
• Cloud / ChronoScale: the cloud business was separated in May 2026 into ChronoScale Corporation (public, ticker CHRN). ChronoScale operates cloud services in Colorado, Minnesota, and Utah and includes a legacy Ekso division that is planned for divestiture. Applied Digital continues to consolidate ChronoScale’s results for accounting purposes.

Key facilities and contracted capacity (as of May 31, 2026)

• Polaris Forge 1 (Ellendale, North Dakota)
  • 400 MW contracted capacity with CoreWeave (via ELN-02 and ELN-03 leases; later amended to CoreWeave affiliate ownership)
  • First data center operational: October 2025
  • Building 4 lease added 150 MW (August 2025), bringing Polaris Forge 1 total to 400 MW
• Polaris Forge 2 (Harwood, North Dakota)
  • 200 MW contracted with an investment-grade hyperscaler
  • Expected delivery: 2H2026 – 1H2027
• Polaris Forge 3 (Harwood, North Dakota)
  • 300 MW contracted with a high investment-grade hyperscaler
  • Expected delivery: 2H2027 – 2H2028
• Delta Forge 1 (southern region)
  • 300 MW contracted with a high investment-grade hyperscaler
  • Expected delivery: 1H2027 – 1H2028
• Delta Forge 2 (southern region)
  • 210 MW contracted with a high investment-grade hyperscaler
  • Expected delivery: 1H2028

Totals and commercial terms:

• Total contracted HPC capacity across five campuses: 1,410 MW
• Total contracted revenue (base 15-year term): approximately $36.2 billion
• Delivery window for contracted capacity: 2H2025 – 2H2028
• Leases are on take-or-pay terms and non-cancellable, with renewal options described in the company’s risk disclosures

2026 operating and customer highlights

• On the HPC Hosting side, one customer accounted for 59% of revenue from continuing operations; no other single customer accounted for more than 10% of HPC revenue.
• On the Data Center Hosting side, one customer accounted for 25% of revenue from continuing operations.
• As of May 31, 2026, approximately 1.4 GW of contracted HPC capacity was under lease, with about 100 MW currently operating and revenue-generating.
• Crypto-mining hosting sites:
  • Jamestown, North Dakota: 106 MW
  • Ellendale, North Dakota: 180 MW
  • Combined hosting capacity: approximately 286 MW
• CoreWeave and other investment-grade hyperscalers anchor multiple leases; the Polaris Forge and Delta Forge campuses are the primary growth engines for HPC capacity.

Growth pipeline and power/fuel strategy

• Site and power pipelines:
  • Secured/under construction: about 1.5 GW of critical IT load across five campuses (Polaris Forge 1–3, Delta Forge 1–2), with roughly 100 MW currently operating
  • Active development pipeline: in excess of 3 GW of gross power in near-term greenfield sites and expansions
  • Extended pipeline: more than 5 GW of gross power in earlier planning stages
• Power generation partnerships: collaboration with Base Electron Corporation to develop approximately 1.2 GW of front-of-meter natural gas-fired generation in the Dakotas to unlock additional capacity
• Operations strategy: standardized AI factory design that supports rapid deployment (about 150 MW per campus in roughly 14–18 months) with high-density cooling and power infrastructure

Data center assets and geographic footprint

• Owned data centers: Polaris Forge and Delta Forge campuses (land in North Dakota and Louisiana)
• Operating footprint: Polaris Forge 1 has commenced operations; Polaris Forge 2–3 and Delta Forge 1–2 are under development with projected delivery windows as noted above
• Jamestown and Ellendale sites provide ongoing hosting capacity (legacy crypto-mining business) and support future HPC hosting expansion

Employee and governance snapshot

• Full-time employees: approximately 256 as of May 31, 2026
• Workforce composition: design, engineering, IT, operations, construction, finance, administration, and marketing; plus consultants and contractors as needed
• Board and governance: multiple independent directors; active oversight of cybersecurity, risk, and internal controls

What the company does

• Designs, builds, owns, and operates large-scale AI-focused data centers for HPC workloads
• Markets AI-factory style campuses with standardized, high-density liquid-cooled architectures
• Generates revenue under long-term leases with CoreWeave and investment-grade hyperscalers and maintains a highly contracted portfolio
• Manages a legacy crypto-mining hosting business that is declining in relative importance
• Holds substantial contracted capacity (1,410 MW) and total base-term contracted revenue (~$36.2 billion) across five campuses
• Maintains a significant development pipeline and power generation partnerships to support future expansion
• Emphasizes low water usage through closed-loop cooling and strong power/interconnection access as competitive advantages
• Employs about 256 full-time staff and engages contractors to support growth and project execution