Applied Digital shares rip 48% higher on $7 billion CoreWeave AI lease agreement

CoreWeave and Applied Digital have signed two long-term lease agreements for artificial intelligence data centers, according to a release.
Shares of Nvidia-backed CoreWeave climbed about 8%, while Applied Digital shares rose more than 48%.
CoreWeave will provide AI and high-performance computing infrastructure for the Applied Digital data center campus in North Dakota.

Shares of Applied Digital rose 48% after the company said it signed two long-term lease agreements with CoreWeave for artificial intelligence data centers.

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Nvidia-backed CoreWeave climbed about 8% following the announcement.

Applied Digital said it expects $7 billion in rental revenue during the approximately 15-year period. The price is set upfront, "including an annual escalator regardless of actual project costs," according to a presentation shared with investors.

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"Through these newly signed long-term leases with CoreWeave, we are taking a step forward in our strategic expansion into advanced compute infrastructure," said Applied Digital CEO Wes Cummins in a release announcing the news.

CoreWeave will provide AI and high-performance computing infrastructure for the Applied Digital data center campus in Ellendale, North Dakota, according to the release.

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Applied Digital will provide 250 megawatts of critical IT load for CoreWeave. The campus is designed to host 400 MW of load.

The lease covers two data cell blocks, one 100 MW and one 150 MW, and Coreweave holds an option for a third data cell block of 150 MW capacity, investor slides show.

CoreWeave shares have been on a tear over the past couple of weeks, setting a record high of $130.76 on May 29. The company, which rents AI servers powered by Nvidia chips, started trading at $39 on March 28.