What happened
Applied Digital Corporation (NASDAQ: APLD) said another 75 megawatts at Polaris Forge 1 reached ready-for-service status on October 2. Three new 25 MW data halls completed the second 150 MW building.
The Ellendale, North Dakota campus now has 250 MW of operational critical IT load. CoreWeave, Inc. (NASDAQ: CRWV) has contracted for 400 MW at full buildout.
Why it matters
This is the kind of evidence the bull case needs. Applied Digital Corporation (NASDAQ: APLD) is moving beyond signed leases and turning power, buildings and cooling systems into usable infrastructure.
The decisive number is 62.5%. Divide 250 operational megawatts by 400 contracted megawatts. That means nearly two-thirds of Polaris Forge 1 is now ready for customer equipment, up from 175 MW before this phase.
The contract is large. Applied Digital Corporation (NASDAQ: APLD) previously disclosed about $11 billion of prospective lease revenue across the campus's roughly 15-year base terms. A simple capacity-weighted allocation puts 250 MW at about $6.9 billion of that total, or roughly $458 million per year.
That estimate is a scale check, not revenue guidance. Rent can differ by building, start date, operating costs and pass-through charges. Ready-for-service status also does not disclose installed servers, utilization, current rent recognized, cash collected or project-level margins.
The strongest countercase is that the hard construction milestone has been met for 250 MW under long-term leases. The remaining risk is narrower than it was when only 100 MW operated. Still, 150 MW remains before the campus reaches full contracted capacity.
Related: Applied Digital Corporation (NASDAQ: APLD) Must Build 1.3 Gigawatts
What's next
The update strengthens the operating case for Applied Digital Corporation (NASDAQ: APLD), but it does not settle the stock case. The next earnings report should show whether the new halls lift data-center rental revenue, operating cash flow and margins.
Investors should also track the last 150 MW at Polaris Forge 1. On-time delivery, lease commencement and cash collection would support the thesis. Delays, more expensive financing or weak cash conversion would weaken it.
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Sources
- Applied Digital Corporation (NASDAQ: APLD) Polaris Forge 1 milestone — Published October 2, 2026. Ready-for-service status, 75 MW addition, 250 MW operational and 400 MW contracted full buildout.
- Applied Digital Corporation (NASDAQ: APLD) fiscal Q2 2026 results — CoreWeave, Inc. (NASDAQ: CRWV) contract, approximately $11 billion of prospective lease revenue and initial rent evidence.
- Applied Digital Corporation (NASDAQ: APLD) fiscal 2026 annual report — Company identity, lease mechanics, customer concentration and construction and financing risks.
- Photo: Front of server racks at NERSC by Derrick Coetzee — Authentic file photograph taken October 14, 2011. Generic data-center context, not an Applied Digital facility or the October 2026 event. Original photograph unchanged; responsive display may crop.
- Photo license: CC0 1.0 Universal — Derrick Coetzee dedicated the photograph to the public domain under CC0 1.0.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
