Applied Digital Corporation (APLD) advanced its strategic push into artificial intelligence (AI) infrastructure, achieving a series of milestones that underscore both its potential and the challenges ahead. The company's latest efforts center on building AI-optimized data centers, backed by substantial leasing activity and technical innovations.
At the heart of Applied Digital’s initiative is the development of purpose-built infrastructure for high-performance AI computing, including the proprietary liquid cooling system which boasts a projected power usage effectiveness (PUE) of approximately 1.11. Leveraging more than 300 days of natural cooling annually at select locations, such as its Polaris Forge campuses and the Ellendale site in North Dakota, the company aims to deliver greater energy efficiency and cost savings to clients training and deploying AI models.
Applied Digital’s expansion was highlighted in October 2025 by the announcement of a $5 billion, 15-year lease agreement for 200 megawatts (MW) of capacity at its Polaris Forge 2 campus in North Dakota with a U.S.-based hyperscaler, raising total contracted capacity to 600 MW across its Polaris Forge 1 and 2 facilities. Earlier that year, the company also expanded its partnership with AI hyperscaler CoreWeave, adding a 150 MW lease at Polaris Forge 1. These deals collectively support approximately $11 billion in prospective lease revenue over the next 15 years, according to company reports.
The buildout of these campuses and rapid leasing activity have fueled an 84% year-over-year increase in first quarter fiscal 2026 revenue, which reached $64.2 million. Notably, the Ellendale campus in North Dakota achieved ready-for-service status for its initial phase, marking an important operational milestone as Applied Digital transitions from construction to deployment.
Despite these achievements, the company's aggressive growth trajectory is not without risks. Expansion expenditures have resulted in increased operating and net losses, with Applied Digital reporting a GAAP net loss to common shareholders of $27.82 million in the most recent quarter, according to Market Chameleon. For fiscal 2024, the company is expected to report a loss of $0.52 per share, slightly wider than the prior year.
Facing intensifying competition from established players like Amazon Web Services, Microsoft Azure, and Equinix—which operates over 250 data centers worldwide and can retrofit facilities for AI applications—Applied Digital must convert its rapid expansion into sustainable recurring income to maintain momentum and investor confidence.
Market response to Applied Digital’s strategy and growth prospects has been positive. The company’s shares have surged 106% year-to-date, handsomely outperforming the broader market’s approximate 9% decline. As of the latest trading session—Tuesday, November 18 at 17:15 PST—APLD stock was priced at $22.84, registering a marginal decrease of $0.12 (-0.01%) with an intraday volume of 26,812,066 shares. The session’s high was $23.57 and the low $21.89.
With a forward price-to-sales ratio of 6.1 compared to the industry average of 4.8, and a price-to-book value of 3.2, Applied Digital’s valuation reflects strong investor interest in the company’s future as a specialist in AI infrastructure.
As Applied Digital moves forward with its capital-intensive projects and transitions more capacity from construction to active operations, continued demand for specialized AI data centers and execution on long-term lease agreements will be crucial to sustaining growth. The company’s ability to manage competition while turning technological and operational advancements into recurring, durable profits will likely define its trajectory in this rapidly evolving sector.
This article draws on reporting from Yahoo Finance, Reuters, GlobeNewswire, and Market Chameleon.