Applied Digital Corporation has signed two long-term lease agreements with CoreWeave to provide 250 megawatts of critical IT load to its Ellendale campus located in North Dakota. These agreements are expected to run for about 15 years and generate approximately $7 billion in total revenue. The campus is designed to support artificial intelligence and high-performance computing workloads on a massive scale.

The agreement also gives CoreWeave the option to use an additional 150 megawatts in the future which could further expand the site's capacity. The Ellendale data center is being planned to eventually scale up to 1 gigawatt of power and support advanced compute infrastructure across multiple stages. Applied Digital aims to complete the first 100 MW building by the fourth quarter of 2025 and the second 150 MW building by mid-2026. A third 150 MW building is in early planning and could be online in 2027.

CoreWeave Partnership Positions Ellendale As Future AI Powerhouse

The data center is expected to serve fast-growing AI demand due to its location and access to affordable power. Ellendale's climate is ideal for energy efficiency which is key to managing capacity growth. Applied Digital said the facility is being purpose-built to meet the specific needs of AI and HPC clients.

Wes Cummins the Chairman and CEO of Applied Digital said the agreement will strengthen their position as a leading provider of next-generation infrastructure. “We believe these leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing.”