AI infrastructure demand is outrunning the physical world.

Hyperscalers and AI cloud companies need massive amounts of compute capacity. Today, the constraint has moved beyond GPUs. It is power, speed, and location. Applied Digital is building large-scale AI data center campuses in places where power is available and land is easier to develop.

The winners in this cycle will not only be the companies with the best chips or models. They will also be the companies that can supply the most compute. And for that they need to secure land, power, cooling, permitting, construction capacity, and long-term customers.

Old data center model was built around internet traffic, cloud storage, SaaS workloads, and proximity to population centers. That is no longer true for AI.

Training and inference workloads do not always need to sit next to major cities. What they need most is cheap power, available grid capacity, cooling efficiency, and the ability to deploy thousands of GPUs at scale.

In June 2025, the company announced 2 roughly 15-year lease agreements with CoreWeave for 250 MW at its Ellendale, North Dakota campus. Reuters reported that the leases were worth about $7 billion over the term.

And in its fiscal Q3 2026 update, Applied Digital said Polaris Forge 2 is a 200 MW investment-grade hyperscaler campus, while Delta Forge 1 is a 300 MW AI factory campus backed by a high investment-grade hyperscaler, with initial operations expected in mid-calendar 2027.

What’s important is that Applied Digital has moved past 1 GW of contracted capacity.

In fiscal Q3 2026, revenue was $126.6 million, up 139% year over year from $52.9 million. Revenue is starting to scale as more nad more facilities come online. Adjusted revenue, which excludes the Cloud Services business, was $108.6 million. Adjusted EBITDA was $44.1 million, compared with $6.3 million in the prior-year quarter.

Now the setup looks even more interesting. Applied Digital just broke out of a 10-month base and then came back to retest the breakout area almost perfectly.

And it’s not just Applied Digital. The whole sector is starting to lead, and that is exactly what you want to see. The best moves usually happen when the stock is not moving in isolation, but together with the entire sector - as mentioned here.