Applied Digital and CoreWeave Confirm 250MW AI Data Center Lease in North Dakota
Applied Digital Corporation announces a significant 250 megawatt (MW) lease agreement with CoreWeave, marking a key development at its Ellendale, North Dakota data center campus designed for AI and high-performance computing (HPC) workloads. The deal spans roughly 15 years and is projected to generate around $7 billion in revenue. CoreWeave also holds options for an additional 150 MW, enhancing scalability at the Ellendale site.
Lease Agreement Highlights
- Two lease contracts cover 250 MW of IT load dedicated to AI and HPC infrastructure.
- Agreement term designed to last about 15 years, underpinning long-term partnership.
- Potential expansion with an additional 150 MW option at Ellendale enhances future growth.
- Estimated revenue generation of near $7 billion arising from these leases.
Strategic Partnership and Market Position
Wes Cummins, Chairman and CEO of Applied Digital, underscores this lease as pivotal for solidifying the company’s role in supplying critical AI and HPC infrastructure. Applied Digital sees heightened AI demand accelerating the need for specialized facilities, positioning itself to meet these demands effectively.
CoreWeave, known as an “AI Hyperscaler™,” aligns with Applied Digital’s growth strategy, reflecting confidence in the Ellendale campus as a launching ground for future AI infrastructure. These long-term leases reinforce Applied Digital’s plans to expand into advanced computational frameworks.
Ellendale Data Center Campus: Design and Capabilities
Campus Scale and Vision
Ellendale represents one of North America’s most ambitious data center projects. It is purpose-built to handle next-generation workloads with large-scale power capacity and rapid deployment features essential for AI and HPC operations. The design anticipates scaling to 1 gigawatt over time.
Lease agreements with CoreWeave mark initial steps in unlocking Ellendale’s full operational potential. The site’s architecture emphasizes efficiency, advanced AI compatibility, and low-cost, abundant energy access.
Power Capacity and Construction Timing
| Phase | Power Capacity | Expected Service Date | Status |
|---|---|---|---|
| Phase 1 | 100 MW | Q4 2025 | Ready for Service |
| Phase 2 | 150 MW | Mid 2026 | Under Construction |
| Phase 3 (Option) | 150 MW | 2027 (Projected) | Planning Stage |
The Ellendale campus supports 400 MW of critical IT load presently, with studies underway supporting over 1 gigawatt capacity. This scale allows flexibility to meet future AI and HPC infrastructure demand.
Energy Efficiency and Location Benefits
The location benefits from an energy-efficient climate. Applied Digital leverages this to meet fast-growing capacity needs. The strategy strengthens the region’s emerging role in the AI data center ecosystem and underscores sustainability goals.
Company Profile: Applied Digital
Applied Digital (Nasdaq: APLD) specializes in creating, building, and managing next-generation data centers. The firm’s purpose-built infrastructure powers accelerated compute workloads. It provides secure, scalable, and sustainable digital hosting.
Applied Digital’s expertise in hyperscale data operations supports AI Factories and evolving needs related to AI, machine learning (ML), blockchain, and HPC workloads. The company offers CSaaS (Compute Solutions as a Service) and GPU-as-a-Service products, emphasizing innovation and robust power supply.
Key Takeaways
- Applied Digital leases 250MW of AI/HPC infrastructure to CoreWeave at Ellendale campus for ~15 years.
- Deal projected to generate around $7 billion revenue, with options for further 150 MW expansion.
- Ellendale designed to scale up to 1 gigawatt, with phased delivery between 2025 and 2027.
- Energy-efficient location and rapid deployment capabilities support next-gen AI workloads.
- Applied Digital establishes itself as a critical infrastructure provider for AI and HPC markets.
Applied Digital Announces 250MW AI Data Center Lease With CoreWeave in North Dakota
Applied Digital Corporation has secured a massive 250MW AI data center lease with CoreWeave in North Dakota, kicking off a partnership that aims to reshape the next generation of artificial intelligence (AI) and high-performance computing (HPC) infrastructure. This long-term lease highlights the strategic role of Applied Digital in powering the AI revolution while positioning North Dakota as a key hub for tech innovation.
So, what’s really cooking at Ellendale? And why is this deal a game-changer? Let’s dive in.
Leasing a Supercharged Future with CoreWeave
Applied Digital, known for designing, building, and operating next-gen digital infrastructure, has entered into two roughly 15-year lease agreements with CoreWeave. The agreement involves provisioning 250 megawatts (MW) of critical IT load to host CoreWeave’s high-powered AI and HPC setups at the Ellendale campus in North Dakota.
To put 250 MW into perspective: it’s enough power to run roughly 200,000 homes. But instead of kettles and fridges, this energy fuels AI model training, blockchain computations, and data science at blazing speeds.
Applied Digital expects this partnership to generate about $7 billion in total revenue over 15 years. And here’s the kicker: CoreWeave has the option to expand by another 150 MW on the same campus. The Ellendale site could expand to a whopping 400 MW, making it a powerhouse for AI and HPC workloads.
Why North Dakota? Location, Efficiency, and Ambition
Then there’s the question of location. Why Ellendale? Applied Digital strategically chose North Dakota because of its cool climate and access to abundant, low-cost energy, perfect for energy-intensive AI operations. The climate is a natural air conditioner, cutting down on cooling costs dramatically. It even earns brownie points for being energy-efficient and eco-friendly in the data center world.
This campus isn’t just another data center. It’s designed to be one of North America’s most ambitious projects. It’s built from the ground up for speed, efficiency, and scalability, engineered to scale up to 1 gigawatt — yes, a THOUSAND megawatts — in the future. The campus will host AI Factories, blockchain compute power, and HPC workloads, all backed by robust hyperscale expertise.
Phased Deployment: Ready to Grow at Lightning Speed
The rollout plan is smart and phased. Applied Digital aims to have the first 100 MW data center up and running by late 2025, specifically targeting CoreWeave’s immediate AI needs. The second 150 MW building will come online in mid-2026, followed by a third building—which CoreWeave has the option to lease—in 2027.
This staged approach means the campus is flexible, growing in sync with expanding AI demand without a long wait or wasted resources. Essentially, Applied Digital is playing a long game, prepared for—and encouraging—rapid AI growth.
Applied Digital’s Edge: Different by Design
Applied Digital isn’t your run-of-the-mill data center outfit. Their facilities are “purpose-built,” as they say, with next-level engineering for accelerated compute needs. The company supports advanced CSaaS (Compute Services as a Service) and GPU-as-a-Service solutions, ideal for AI and HPC.
Backed by deep hyperscale experience, Applied Digital accommodates AI systems, machine learning workloads, blockchain networks, and HPC, making the partnership with CoreWeave feel like a perfect puzzle piece.
Leadership’s Vision: A Launchpad for AI Innovation
Wes Cummins, Applied Digital’s Chairman and CEO, emphasizes that Ellendale is more than a data center project — it’s a launchpad for future AI infrastructure. “These leases solidify Applied Digital’s position as an emerging key infrastructure provider for AI and HPC,” Cummins says. He sees CoreWeave as an ideal growth partner who shares their vision of pushing AI’s frontier.
As AI demand grows exponentially, the ability to rapidly deliver substantial compute power becomes a competitive advantage. Ellendale is designed for exactly that—accelerated deployment, scale, and performance.
Risks and Realities to Consider
Before picturing a smooth AI utopia, let’s peek at the fine print. Applied Digital’s press release carries standard forward-looking disclaimers. Risks include:
- Potential delays or challenges in completing Ellendale’s build-out
- Changes in AI or HPC infrastructure demand might shift plans
- Leasing risks and financial hurdles
- Dependence on key customers like CoreWeave
- Regulatory and supply chain disruptions
That’s not to rain on the parade but reminds us the tech world is always a mix of bold vision and logistical hurdles.
What Does This Mean for AI Enthusiasts and Industry Watchers?
If you’re tracking AI infrastructure, Applied Digital’s move is a signal flare. The scale—250MW now, potentially up to 400MW or beyond—is an indicator of how much raw compute power AI companies like CoreWeave need. The race for data center real estate, especially one optimized for AI, is fierce.
North Dakota might not be Silicon Valley, but it’s staking its claim on the AI map. For energy-hungry AI startups and HPC projects, having large, efficient, expandable compute hubs in strategic locations matters deeply. Applied Digital is betting that the future’s AI factories will thrive here.
Final Thoughts and Takeaways
The Applied Digital-CoreWeave deal outlines a bold vision and practical steps toward meeting AI’s insatiable computational appetite. Ellendale’s design, power capacity, and location create a next-gen digital infrastructure tailored to AI’s unique needs. Applied Digital isn’t just building data centers—they’re crafting an AI infrastructure ecosystem that supports rapid growth.
What’s exciting is this: as AI grows to impact every industry, from healthcare to finance to creative arts, infrastructure like that at Ellendale will fuel innovation. These aren’t just buildings with servers; they’re the engines driving tomorrow’s AI breakthroughs.
Would you invest in the future of AI infrastructure if you were in Applied Digital’s shoes? Their partnership with CoreWeave seems to be a confident “yes.” Meanwhile, for anyone watching AI trends, Ellendale is one place to keep an eye on.
Want to see what the Ellendale campus looks like? Applied Digital shared some photos here.
What is the scope and duration of the lease agreement between Applied Digital and CoreWeave?
Applied Digital signed two lease agreements with CoreWeave for about 15 years each. These leases cover 250 MW of IT load at Applied Digital’s Ellendale campus in North Dakota. CoreWeave may access an additional 150 MW, scaling future capacity.
How does the Ellendale campus support AI and HPC workloads?
Ellendale is engineered for high-density, large-scale power needs vital for AI and HPC tasks. The campus can scale to 1 gigawatt over time, combining rapid deployment, energy efficiency, and access to low-cost power.
When will the different phases of the Ellendale data center be operational?
The first 100 MW facility will be ready by Q4 2025. A 150 MW center is under construction, expected mid-2026. A third 150 MW building is planned for 2027, allowing phased expansion to 400 MW of critical IT load.
What strategic benefits does Applied Digital gain from its partnership with CoreWeave?
This lease establishes Applied Digital as a provider of infrastructure critical for AI’s growth. The partnership supports substantial revenue while positioning Ellendale as a hub for evolving AI and HPC demands.
How does Applied Digital’s Ellendale campus contribute to energy efficiency and sustainability?
The campus leverages an energy-efficient climate conducive to rapid capacity growth. It supports sustainable operation, enabling Applied Digital to lead in AI data center ecosystems while managing power use responsibly.
