Applied Digital (NASDAQ: APLD) Q1 Financial Results
Building the Infrastructure Powering the AI Era
Applied Digital Corporation is rapidly establishing itself as a leading developer and operator of high-performance data centers purpose-built for next-generation computing. Founded in 2021 and headquartered in Dallas, the company designs sustainably engineered, power-dense facilities that meet the demanding needs of AI, hyperscale cloud, and blockchain workloads.
Applied Digital is positioned at the center of the AI computing boom, providing the specialized infrastructure required for the industry’s rapid expansion.
Artificial intelligence is driving unprecedented demand for power-dense, high-performance computing facilities.
Applied Digital is uniquely aligned with three major market forces:
Rising GPU Power Density
New AI hardware requires >50 kW per rack—far beyond the capabilities of most existing data centers. Fewer than 10% of facilities today can support these loads, creating a major supply gap that APLD directly solves.
Record Hyperscale Investment
Hyperscalers are expected to spend $350 billion in 2025 alone on AI infrastructure. These deployments require trusted development partners that can build rapidly at scale.National Power Constraints
The U.S. faces a projected 45 GW shortfall in data center power by 2030. APLD’s strategy of developing in power-abundant regions such as North Dakota provides a durable competitive edge.
‘With hyperscalers expected to invest roughly $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era.’
- Wes Cummins, CEO, Applied Digital
Polaris Forge 2 (Harwood, ND) – 200 MW Hyperscaler Opportunity
APLD is in advanced negotiations with a U.S. investment-grade hyperscaler for a 200 MW lease at the Polaris Forge 2 campus. Commercial terms are largely aligned. These agreements form the backbone of a rapidly expanding, de-risked, long-term revenue base.
200 MW (under discussion)
U.S. investment-grade hyperscaler
~$5B over initial term
~15-year base; two 5-year extensions
2H 2026–1H 2027
Capital Structure
APLD has secured a scalable capital base to fund its development pipeline:
Up to $5B Preferred Equity Facility with Macquarie Asset Management
$112.5M initial draw to support Polaris Forge 1
$200M raised via expanded Series G preferred offering
$50M equipment financing for Polaris Forge 2
$1.6B invested in property and equipment to date
This financial platform fully supports the company’s large-scale growth trajectory.
AI / HPC
APLD is deploying advanced, sustainable technology, including a proprietary direct-to-chip liquid cooling system achieving:
PUE of 1.18
Near-zero water consumption
This positions APLD as a leader in efficient, high-density AI infrastructure.
Blockchain
The legacy blockchain segment provides reliable cash flow and operational expertise:
286 MW of operating capacity
$37.9M revenue in Q1 FY2026 (+9% YoY)
Cloud Services
The cloud services business is undergoing review, reflecting the company’s focus on mission-critical AI data center infrastructure.
Applied Digital is executing a clear plan to evolve into a large-scale, AI-focused real estate and infrastructure platform.
700 MW under construction (600 MW contracted)
4.3 GW of utility power in active development
5+ GW in extended pipeline
APLD’s long-term vision is to evolve into an AI-focused data center REIT, supported by:
Long-term CPI-linked leases
High-quality investment-grade tenants
Scalable development capital from Macquarie
A growing portfolio of mission-critical, income-producing assets
Applied Digital is executing with speed, scale, and precision at a time when AI infrastructure demand is accelerating globally. With a multi-billion-dollar contracted backlog, a fortified capital base, and a clear pathway toward REIT-scale profitability, the company is well positioned to become a leading owner and operator of next-generation data centers powering the AI economy.
