Applied Digital's Ellendale HPC Data Center: A Milestone in Renewable Energy-Driven Computing

Applied Digital Corporation (Nasdaq: APLD) has announced a significant milestone in the development of its high-performance computing (HPC) data center in Ellendale, North Dakota. The company's strategic location and innovative design position it as a leader in the growing HPC market, with a focus on sustainability and cost-effectiveness.

The Ellendale facility, set to be the company's second in North Dakota, is designed to be a 180-megawatt (MW) next-generation datacenter, marking a significant expansion of Applied Digital's hosting capacity. Once fully energized, this location will bring the Company to 280MW of total hosting capacity across its facilities in North Dakota, all of which are contracted out to customers on multi-year terms.



The strategic placement of the Ellendale facility near abundant and renewable power sources significantly impacts its overall cost and environmental footprint. By leveraging nearby wind farms, Applied Digital can harness clean, renewable energy, reducing its reliance on traditional power sources and lowering operational costs. This strategic location also allows the company to take advantage of curtailment opportunities, further optimizing energy usage and minimizing expenses.

The company's unique datacenter design offers multi-story datacenter buildings that leverage high-density racks to accommodate nearly 50,000 Nvidia's H100 SXM class GPUs in a single parallel compute cluster. This design, combined with the abundance of renewable energy in Ellendale, allows Applied Digital to provide ultralow cost and highly efficient liquid-cooled infrastructure for HPC applications.



The evolving landscape of AI and HPC applications calls for a substantial increase in compute power, and Applied Digital's purpose-built Ellendale facility will be one of the first of its kind to meet those demanding requirements. The company's proprietary design and strategic placement of the facility near sources of abundant and renewable power will offer unprecedented infrastructure for these types of workloads at a significant cost reduction to its customers while delivering enhanced performance through its data center design that highly maximizes compute GPU density.

The HPC markets are expected to grow with an anticipated revenue of $65.12 billion globally by 2030, and Applied Digital expects to continue its advancements into these adjacent markets. The company's commitment to innovation and exceptional customer support aims to facilitate businesses in harnessing the transformative power of AI.

In conclusion, Applied Digital's Ellendale HPC data center development is a significant milestone in the company's journey to secure both project financing and a long-term lease with a hyperscaler. The facility's strategic location, innovative design, and focus on renewable energy position it as a leader in the growing HPC market, with a commitment to sustainability and cost-effectiveness. As the HPC markets continue to grow, Applied Digital is well-positioned to capitalize on this opportunity and deliver value to its customers and shareholders.