Core News Facts
Applied Digital (NASDAQ: APLD) has secured $16 billion in lease agreements for its AI data center business over the next 15 years, indicating significant demand for its facilities. The company’s revenue is projected to grow from $8.5 million in fiscal 2022 to $144.2 million by fiscal 2025, excluding its cloud operations, which will be spun off into a new entity called ChronoScale.
In the next few years, Applied Digital plans to expand its data center capacity, with developments including a 150 MW AI/HPC data center expected to be operational this year. The company currently operates two sites in North Dakota with a combined capacity of 286 MW and has contracted lease payments primarily from CoreWeave (NASDAQ: CRWV) to utilize 250 MW of its facilities.
Despite its growth, Applied Digital posted losses that expanded from $23.5 million in fiscal 2022 to an expected $233.7 million by fiscal 2025. Analysts anticipate its revenue, including cloud business, to rise by 38% to $297.3 million in fiscal 2026, although predictions may be revised following the spin-off of ChronoScale.
