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Applied Digital Signs 810 MW Leases as First-Quarter Revenue Surges 322%

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APLD$23.68 −0.71%

Applied Digital Corporation (NASDAQ:APLD) signed three long-term hyperscaler leases totaling 810 megawatts, representing approximately $20.2 billion in contracted revenue. The company also posted first-quarter revenue of $341.9 million, up 322% year-over-year, alongside adjusted revenue of $300.4 million and adjusted EBITDA of $64.4 million. In addition, the firm secured a 1,200-megawatt natural gas power purchase agreement in North Dakota starting in 2030 and completed financing activities including issuing $1.59 billion in senior secured notes.

The rapid expansion highlights growing demand for data center infrastructure and power capacity to support artificial intelligence operations. Applied Digital now holds 1.41 gigawatts of contracted capacity across five U.S. campuses, representing roughly $36 billion in 15-year base lease revenue. Furthermore, its subsidiary ChronoScale, in which Applied Digital holds a 96% stake, plans a 50-megawatt AI deployment with Microsoft using NVIDIA equipment, aiming for $1 billion in annualized recurring revenue by 2027.

Looking ahead, the company expects to add over 600 megawatts of capacity in the next 12 months. Applied Digital is targeting 3.5 to 4 gigawatts of total operating capacity by the end of 2030 as it continues activating site capacity and securing future power agreements.

Key points

  • Applied Digital Corporation signed three hyperscaler leases for 810 megawatts worth about $20.2 billion in contracted revenue.
  • First-quarter revenue rose 322% year-over-year to $341.9 million, with adjusted EBITDA reaching $64.4 million.
  • Total contracted capacity reached 1.41 gigawatts across five U.S. campuses, representing $36 billion in 15-year base revenue.
  • Secured a 1,200-megawatt natural gas power agreement in North Dakota beginning in 2030 to fuel ongoing expansion.
  • Management expects to add over 600 megawatts in the next 12 months and targets up to 4 gigawatts by 2030.

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Questions and answers

How much new capacity did Applied Digital sign in hyperscaler leases?

Applied Digital signed three long-term hyperscaler leases totaling 810 megawatts, which represent roughly $20.2 billion in contracted revenue across its Delta Forge and Polaris Forge sites.

What were Applied Digital's Q1 financial results?

First-quarter revenue reached $341.9 million, a 322% increase year-over-year. Adjusted revenue was $300.4 million, adjusted EBITDA came in at $64.4 million, and the company reported an adjusted net loss of $4.1 million.

What are Applied Digital's long-term growth targets?

The company expects to add more than 600 megawatts of capacity over the next 12 months and aims to achieve 3.5 to 4 gigawatts of total operating capacity by the end of 2030.