APLD Stock Surges as Applied Digital Plans $3 Billion AI Factory Expansion

Applied Digital Corp. (Nasdaq: APLD) announced its plan to commence construction in September 2025 on Polaris Forge 2, a $3 billion AI factory located near Harwood, North Dakota. This initiative represents a 280-megawatt AI facility with the capacity for expansion beyond its original scope. Scheduled to begin operations in 2026 and achieve full capacity by early 2027, Polaris Forge 2 is designed to meet the growing demand for scalable, high-performance AI infrastructure across numerous sectors.

The decision to build Polaris Forge 2 emerges as the demand for AI computing capacity intensifies, driven by hyperscalers, enterprises, and research organizations alike. The expansion will bolster Applied Digital’s presence in North Dakota, following the success of the Polaris Forge 1 Ellendale campus. North Dakota offers favorable conditions for this growth due to its abundant energy resources, substantial land availability, and business-friendly climate.

Wes Cummins, CEO of Applied Digital, expressed the strategic benefit of Polaris Forge 2 for both the company and the state. "We believe Polaris Forge 2 represents the next stage in Applied Digital’s rapid growth," Cummins affirmed. "North Dakota continues to be one of the most strategic locations in the country to meet the accelerating demand for AI capacity." Applied Digital is negotiating with a U.S.-based investment-grade hyperscaler, highlighting the project's fortuitous timing and potential for creating value for clients and local communities.

Polaris Forge 2 entails the development of two initial facilities with the possibility for future extensions. Contracting over 900 acres for the campus, Applied Digital has also secured power access through Cass County Electric Cooperative. Once operational, the site is expected to employ more than 200 full-time staff members in addition to long-term contractors.

Cass County Electric Cooperative and Minnkota Power Cooperative have expressed enthusiasm in supporting the project. Paul Matthys, Cass County Electric’s President and CEO, highlighted the alignment of this partnership with cooperative values, while Mac McLennan of Minnkota Power spoke to the significant technological advancement the project will bring to the region.

The expansion into Harwood is anticipated to yield substantial economic benefits for North Dakota, echoing the development footprint seen in Ellendale. Governor Kelly Armstrong underscored the positive impact such corporate investment can have on rural communities, citing the precedent of workforce housing initiatives and community partnerships in the region.

The Greater Fargo Moorhead Economic Development Corporation (GFMEDC), represented by its President & CEO Joe Raso, expressed strong support for the economic boost this project promises to deliver, particularly in terms of job creation and bolstering the local talent pool.

Chris Schilken, Commerce Commissioner, recognized Applied Digital's venture as a model for rural innovation, while Harwood Mayor Blake Hankey welcomed the area’s evolution into a significant player in AI infrastructure.

In stock market developments, recent investor interest in Applied Digital was ignited by plans for the Polaris Forge 2 and a consequent positive earnings report. The stock achieved a milestone by breaking through a longstanding resistance level, signaling robust investor confidence. Key strategic partnerships and expansions, like the notable increase in IT load capacity through CoreWeave Inc., underscore the company’s growth trajectory.

Applied Digital's ongoing strategic initiatives, coupled with favorable financial performances, suggest promising prospects for future growth in the AI infrastructure space. However, as analysts weigh in, investors are exercising caution amid the evolving landscape of opportunities and inherent risks within the sector.