Recent news highlights Applied Digital's strategic partnerships, growth in AI-driven cloud and HPC hosting, and market reactions to AI optimism. The company has engaged Babcock & Wilcox to power a $1.5 billion AI project and secured significant lease agreements supporting its HPC data center expansion.

• Applied Digital Corp announced a partnership with Babcock & Wilcox to power a $1.5 billion AI-related project, underscoring its commitment to AI infrastructure development [N1].
• The company is accelerating growth with AI-driven cloud and HPC hosting services, reflecting its strategic focus on high-performance computing markets [N2].
• Applied Digital's stock price jumped 14% on market optimism related to AI sector developments [N3].
• Discussions and analyses around Applied Digital's stock and business prospects have been active, indicating heightened market interest [N5][N6][N7].

Applied Digital's growth in HPC hosting, evidenced by operational data centers and substantial capacity under construction, positions it to capitalize on increasing demand for AI and machine learning infrastructure. Strategic lease agreements with CoreWeave and a 15-year lease with a U.S. investment-grade hyperscaler demonstrate strong customer commitments. The company's proprietary cooling technology and focus on sustainability may attract customers prioritizing energy efficiency. The proposed business combination of its Cloud Services Business with EKSO Bionics could unlock value and expand its AI compute platform offerings. Robust liquidity and recent capital raises provide financial flexibility to support expansion and innovation.

The company faces execution risks related to completing construction of HPC facilities on schedule and within budget, as well as risks in securing and maintaining key customer leases. Regulatory uncertainties around AI and blockchain hosting, including energy consumption scrutiny and evolving compliance requirements, could impose operational constraints or costs. Dependence on a limited number of principal customers may expose the company to revenue volatility. The capital-intensive nature of the business and historical net losses highlight the need for sustained financing and operational improvements. Market volatility in cryptoasset prices and regulatory changes could adversely affect the Data Center Hosting segment.

Applied Digital's moat is anchored in its specialized expertise in designing and operating high-performance, sustainably engineered data centers optimized for AI and HPC workloads. Its proprietary waterless cooling technology and rapid deployment capabilities provide operational efficiencies and environmental advantages. The company's Polaris Forge AI Factory model integrates economic development in underserved communities, potentially enhancing stakeholder support and access to resources. Long-term lease agreements with key customers, such as CoreWeave, and substantial capacity under contract at its Polaris Forge campuses contribute to revenue visibility and customer lock-in. Additionally, the company's ability to secure significant financing and strategic partnerships supports its competitive positioning in a capital-intensive industry with high barriers to entry.

• Construction and Development Risks: Delays or cost overruns in building HPC data centers at Polaris Forge campuses could impact capacity availability and financial performance.
• Customer Concentration and Lease Execution: Dependence on key customers like CoreWeave and the need to execute and maintain long-term leases pose risks to revenue stability.
• Regulatory and Compliance Risks: Evolving AI and blockchain regulations, including energy efficiency mandates and transparency requirements, may increase compliance costs or restrict operations.
• Financing and Liquidity Risks: The capital-intensive nature of the business requires ongoing access to financing; inability to secure funding could constrain growth and operations.
• Market and Operational Risks: Volatility in cryptoasset markets and potential power or equipment disruptions could adversely affect the Data Center Hosting business segment.

• Applied Digital Corp is a U.S.-based designer, developer, and operator of high-performance, sustainably engineered data centers and colocation services focused on AI, networking, and blockchain workloads, headquartered in Dallas, TX, founded in 2021.
• The company operates two main business segments: Data Center Hosting Business and HPC Hosting Business.
• The Data Center Hosting Business provides energized infrastructure services primarily to crypto mining customers, with custom-designed data centers allowing customers to rent space based on power requirements.
• As of November 30, 2025, Applied Digital operates a 106 MW facility in Jamestown, ND, and a 180 MW facility in Ellendale, ND, both at full capacity.
• The HPC Hosting Business designs, constructs, and operates next-generation data centers for HPC applications including AI, natural language processing, and machine learning.
• The first HPC data center at Polaris Forge 1 campus with 100 MW capacity commenced operations in October 2025; a second 150 MW HPC data center is under construction at the same campus.
• A third HPC data center facility at Polaris Forge 1, also 150 MW, is under construction with a ready-for-service date in 2027.
• Applied Digital has entered into multiple data center leases with CoreWeave, Inc. for a total of 400 MW capacity at Polaris Forge 1, including a 15-year lease for 200 MW at Polaris Forge 2 campus.
• Polaris Forge 2 campus is under development near Harwood, ND, with initial 200 MW data center construction started and anticipated to reach initial capacity in 2026 and full capacity in early 2027.
• The company recognized $41.6 million and $79.5 million in revenue from the Data Center Hosting Business for the three and six months ended November 30, 2025, respectively.
• The HPC Hosting Business generated $85.0 million and $111.3 million in revenue for the three and six months ended November 30, 2025, respectively.
• The Cloud Services Business, providing high-performance computing power for AI and machine learning, was classified as held for sale and discontinued operations as of late fiscal 2025.
• Applied Digital entered into a non-binding term sheet for a proposed business combination of its Cloud Services Business with EKSO Bionics Holdings, Inc., to form ChronoScale Corporation, with Applied Digital initially owning over 80%.
• As of November 30, 2025, the company had $1.913 billion in cash and cash equivalents, current assets of $2.717 billion, and current liabilities of $563 million, resulting in a current ratio of 4.82 and a cash ratio of 3.4.
• Net loss for the quarter ended November 30, 2025 was $14.45 million, with basic and diluted EPS of -$0.07.
• The company completed a $2.35 billion offering of 9.25% senior secured notes due 2030 through its subsidiary APLD ComputeCo LLC, with net proceeds of approximately $1.9 billion after issuance costs and repayment of prior loans.
• Applied Digital has a revolving credit facility of $65 million with First National Bank of Omaha, with no draws as of November 30, 2025.
• The company has issued and sold Series G Preferred Stock during 2025, with conversions into common stock also occurring.
• Applied Digital has granted performance stock units and restricted stock units to its CEO under its 2024 Omnibus Equity Incentive Plan.
• The company faces risks including construction completion of HPC facilities, customer lease execution, financing availability, workforce challenges, power and equipment disruptions, regulatory compliance especially related to AI and blockchain hosting, and evolving energy efficiency regulations.
• Applied Digital is actively monitoring and engaging with regulatory developments in AI and blockchain hosting, including compliance with new laws such as California's Transparency in Frontier Artificial Intelligence Act and the EU AI Act.
• The company reported adjusted EBITDA of $20.2 million for the three months ended November 30, 2025, reflecting operational adjustments including stock-based compensation and non-recurring expenses.
• Applied Digital's business model includes rapid deployment capabilities, proprietary waterless cooling technology, and a focus on economic opportunities in underserved communities through its Polaris Forge AI Factory model.