Applied Digital shares fell 5.9% after earnings, with the call offering investors a longer-dated expansion opportunity but limited near-term visibility on its conversion: management expects about 250 MW of expansion leases by calendar year-end, while execution remains the priority. The company’s plan to bring more than 600 MW online over the next 12 months is ambitious relative to the 250 MW delivered in the past year.
- Management cited approximately **$36 billion in contracted revenue** across five campuses in three states.
- Applied Digital expects to place **over 600 MW into service in the next 12 months**, compared with **250 MW over the past 12 months**.
- The company expects approximately **250 MW of expansion leases to be executed by calendar year-end**, at materially higher pricing than prior leases; these leases are not yet described as executed.
- Its strategy targets **take-or-pay contracts of at least 15 years** with Tier 1, investment-grade hyperscalers, and facilities designed for useful lives beyond a single compute generation.
- Management emphasized that power is the industry’s largest gating factor and identified North Dakota as central to its buildout.
Community Discussion