In a significant move for both the artificial intelligence (AI) and high-performance computing (HPC) sectors, Applied Digital Corporation has recently secured a monumental $7 billion deal with CoreWeave, the AI Hyperscaler™. This partnership involves two long-term lease agreements that will span approximately 15 years and are set to transform the landscape of data centers dedicated to AI and HPC applications.
Overview of the Deal
On June 2, 2025, Applied Digital announced its plans to deliver a staggering 250 megawatts (MW) of critical IT load to support CoreWeave’s AI and HPC infrastructure at its Ellendale, North Dakota data center campus. Furthermore, the agreements also allow CoreWeave the flexibility to access an additional 150 MW of IT load, making the Ellendale facility a scalable hub that can adapt to the ever-growing AI and HPC workloads.
Wes Cummins, Chairman and CEO of Applied Digital, highlighted this development as a pivotal moment for the company. "We believe these leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing," Cummins stated. As demand for AI continues to escalate, Applied Digital expresses confidence in delivering substantial returns while catering to the evolving needs of these sectors.
Ellendale Campus: A Game Changer
The Ellendale campus is touted as one of North America’s most ambitious data center developments. Designed specifically for next-generation workloads, this facility combines large-scale power capacity with rapid deployment capabilities—features that are paramount for AI and HPC clients. The campus is engineered for high-density computing and is planned to scale up to an impressive 1 gigawatt over time.
Cummins emphasized, "We believe Ellendale is more than a development project—it’s a launchpad for the future of AI infrastructure." This statement underscores the importance of the facility in meeting future demands while supporting early market needs.
Strategic Positioning
The agreements with CoreWeave mark a foundational step in unlocking the full potential of the Ellendale campus. Applied Digital designed the project for efficiency and speed in deployment, with an emphasis on its prime location and innovative AI features. Access to abundant, low-cost energy is another critical aspect that enables Applied Digital to meet the rapidly growing capacity demands of its clients.
The company anticipates that the first 100 MW data center for CoreWeave will be operational by the fourth quarter of 2025. The second building, expected to feature a 150 MW data center, is currently under construction and aims to be ready for service by mid-2026. CoreWeave also has an option for a third 150 MW facility, which is still in the planning stages with a target completion in 2027.
Commitment to Sustainability and Innovation
Applied Digital’s innovative approach not only positions it as a leader in the AI data center ecosystem but also reflects its commitment to sustainability. The Ellendale campus will host 400 MW of critical IT load and has over 1 gigawatt of power capacity undergoing various stages of load study, allowing for further expansion to support additional AI and HPC infrastructure development.
This endeavor is not just about generating significant revenue; it stands as a testament to the evolving nature of technology and the critical infrastructure that supports it. The integrity and reliability of Applied Digital’s future developments could bolster its reputation in a marketplace hungry for scalable and sustainable computing solutions.
The Forward-Looking Perspective
While the excitement surrounding such deals is palpable, it’s essential to consider the inherent uncertainties of forward-looking statements. The success of the Ellendale campus is contingent on various factors, including the successful execution of construction, ongoing demand for AI and HPC infrastructure, and maintaining strong relationships with key partners and customers.
The potential risks and uncertainties associated with leasing business and the broader HPC industry underscore that while the path ahead is promising, it’s not without its challenges. For stakeholders and investors, it’s critical to stay informed through the company’s regular updates and financial disclosures to understand better how these agreements and developments unfold.
Conclusion
Applied Digital’s $7 billion lease agreement with CoreWeave marks a transformative chapter in the AI and HPC sectors. As innovations continue to accelerate, the formation of such strategic partnerships highlights the importance of infrastructure that can keep pace with technological advancements. The Ellendale data center is positioned to be a critical player in facilitating the burgeoning demand for AI and HPC services.
Through this ambitious venture, Applied Digital not only aims to solidify its place in the industry but also signifies a commitment to delivering sustainable and cutting-edge computing solutions that will lay the groundwork for future advancements in artificial intelligence and high-performance computing.
As we look toward the future, we can anticipate a significant evolution in data center infrastructure, driven by innovations that will undoubtedly shape how we interact with technology in the years to come.
