Applied Digital Corp (NASDAQ: APLD) is a data center company that designs, constructs, and operates facilities for high-performance computing (HPC) and AI workloads. Revenue comes from leasing power capacity and data center space to customers who pay advance deposits based on projected demand, primarily under the Data Center Hosting Business segment. The company is building its Polaris Forge portfolio, anchored by a three-building HPC campus in Ellendale, North Dakota totaling 400 MW, with two lease agreements covering 250 MW signed on May 28, 2025. Total revenue was $144.2 million for the fiscal year ended May 31, 2025, up from $136.6 million in FY2024. The company carries significant debt and reported a net loss of $231 million for the fiscal year ended May 31, 2025, including $72.7 million from discontinued operations tied to its Cloud Services Business. The Cloud Services Business, operated through Applied Digital Cloud Corporation, provides GPU access to AI and machine learning developers via third-party co-location centers in Colorado, Minnesota, and Utah.

Revenue model

Customers in the Data Center Hosting Business pay advance deposits based on projected demand for power and space. Revenue is recognized as services are delivered. Total revenue for the fiscal year ended May 31, 2025 was $144.2 million, comprising $142.3 million in third-party revenue and $1.9 million in related-party revenue.

Products and services

HPC and AI-focused data centers (Polaris Forge portfolio, Ellendale, North Dakota); purpose-built high-power-density GPU facilities; cloud computing services renting GPU access to AI and machine learning developers via co-location centers (Cloud Services Business, operated through Applied Digital Cloud Corporation, classified as discontinued operations as of the FY2025 10-K).

Customers and end markets

AI and machine learning developers, GPU compute users, and HPC workload operators. Customers in the Data Center Hosting Business pay in advance based on anticipated usage. Two lease agreements covering 250 MW of the Polaris Forge 1 campus were signed May 28, 2025.

Value-chain role

Developer and operator of purpose-built HPC and AI data center infrastructure. Procures and constructs facilities with high-power-density power and cooling systems, then leases capacity to end customers. Acts as a capital-intensive infrastructure provider upstream of compute workloads.

Geographic exposure

Primary development activity in Ellendale, North Dakota (Polaris Forge campus). Cloud Services Business operates in Colorado, Minnesota, and Utah. Domestic operations only based on filing disclosures.

Competitors

Multiple U.S. data center providers (named as a group in the filing; specific competitor names not disclosed in the excerpts provided)

Source: SEC 10-K, filed 2025-07-30

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