Applied Digital Enters Into AI Data Center Lease With CoreWeave
Digital infrastructure builder and operator Applied Digital Corporation recently entered into a pair of 15-year lease agreements with CoreWeave.
Under the lease agreements, Applied Digital will deliver 250 megawatts of critical IT load to host CoreWeave’s AI and high-performance computing, or HPC, infrastructure at its Ellendale, N.D., data center campus. Over the approximately 15-year term, Applied Digital anticipates generating approximately $7 billion in total revenue from the leases.
The real estate activity is part of the Applied Digital Series E-1 Preferred Stock offering being distributed through the broker-dealer and registered investment adviser channels. The offering size is $62.5 million with a share price is $1,000 per share and a 9% annualized cumulative dividend, intended to be paid monthly.
The minimum permitted purchase is generally $5,000 but purchases of less than $5,000 are up to the company’s discretion.
The dealer manager of the preferred stock offering is Preferred Capital Securities LLC.
Pursuant to the lease agreements, CoreWeave also retains the option to access an additional 150 MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads.
“We believe these leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing,” said Wes Cummins, chairman and chief executive officer of Applied Digital. “As demand for AI accelerates exponentially, we believe that we are uniquely positioned to deliver substantial returns while supporting the evolving and dynamic needs of these rapidly evolving sectors. We view CoreWeave as an ideal partner as we accelerate our growth and innovation.”
According to the company, Applied Digital’s Ellendale campus is believed to be one of the most ambitious data center developments currently underway in North America. Intended to be purpose-built for next-generation workloads, the facility combines large-scale power capacity with rapid deployment capabilities – both critical for AI and HPC clients.
The Ellendale campus was planned to be engineered for high-density compute and designed to scale up to 1 gigawatt over time. The two approximately 15-year lease agreements mark a foundational step in unlocking the campus’s full potential.
“We believe Ellendale is more than a development project — it’s a launchpad for the future of AI infrastructure,” added Cummins. “We intend for this platform to put us in a strong position to support early demand while continuing to grow alongside our customers. Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure.”
Applied Digital, which develops, builds, and operates next-generation data centers and infrastructure, expects the first 100 MW data center for CoreWeave to be ready for service in the fourth quarter of 2025. The second building, which is expected to house a 150 MW data center, is currently under construction and is expected to be ready for service in the middle of 2026. Additionally, CoreWeave holds an option for the third 150 MW building, which is currently in the planning stages, anticipated to be ready for service in 2027.
Applied Digital’s Ellendale campus is designed to host 400 MW of critical IT load. Ellendale has 1+ gigawatts of power capacity currently under various stages of load study, allowing the campus to expand its power capacity to support additional AI and HPC data center infrastructure development.
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