Applied Digital Corporation has dramatically expanded its existing partnership with leading AI cloud provider CoreWeave, triggering a significant market response. A monumental new agreement valued at approximately $11 billion underscores the company’s strategic pivot toward high-performance computing infrastructure.
Major Expansion with CoreWeave Finalized
The company has finalized a new lease agreement with CoreWeave for an additional 150 megawatts of capacity at its data center facility in North Dakota. This expansion brings the total contracted capacity dedicated to CoreWeave to a substantial 400 megawatts.
The cumulative revenue expected from these agreements now totals roughly $11 billion. The first two contracts, originally announced in May, accounted for $7 billion of this total. The new 150-megawatt facility is scheduled to be fully operational by 2027, complementing other planned facilities expected to come online in late 2025 and mid-2026.
Key details of the expanded partnership include:
* Capacity Increase: 150 additional megawatts
* Total Contracted Capacity: Now 400 megawatts
* Aggregate Value: Projected revenue of $11 billion
* Operational Timeline: New facility to be operational in 2027
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Positive Investor Sentiment Drives Share Gains
The market responded favorably to the announcement. Applied Digital’s shares registered a notable gain of 2.1 percent during Friday’s trading session. Some trading platforms even reported a rise of up to 4 percent in after-hours activity, signaling strong investor approval.
Strategic Shift Attracts Institutional Backing
This deal highlights the significant institutional confidence building behind Applied Digital’s strategic vision. Since rebranding from Applied Blockchain Inc. in late 2022, the company has successfully attracted major institutional investors. Its decisive shift away from cryptocurrency mining infrastructure to focus on high-performance computing for artificial intelligence appears to be yielding substantial results.
Current ownership data confirms that institutional investors now hold a majority stake in the company. This substantial backing signals profound market confidence in its strategic positioning within the rapidly expanding AI infrastructure sector.
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