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Applied Digital’s 600-Megawatt Expansion — A Pivotal AI Infrastructure Test!

Applied Digital Corporation reported fiscal Q1 2027 results highlighting progress in developing AI-focused data center campuses, termed “AI factories.” The company has approximately $36 billion in contracted revenue across five campuses in North Dakota, Louisiana, and Alabama, alongside potential expansion into selected European markets. Its business model relies on take-or-pay leases generally extending at least 15 years with Tier 1, investment-grade hyperscalers. Campuses are designed for 30-plus-year lifespans, contrasting with competitors’ focus on 5- to 6-year GPU cycles. This infrastructure flexibility could support adaptability, lease renewals, recurring revenues, and terminal value. North Dakota remains central to expansion, benefiting from low electricity costs, substantial generation capacity, and supportive regulation. Polaris Forge 1 and 2 are advancing ready-for-service capacity, while a long-term power purchase agreement linked to a 1,200-megawatt natural gas facility strengthens energy access. Additional U.S. campuses are progressing, with revenue contributions expected to increase. Quarterly revenue reached $341.