Applied Digital Announces $3 Billion Data Center Expansion, Shares Jump 6.5%

Applied Digital (APLD) announced a $3 billion data center expansion, Polaris Forge 2, in North Dakota. The 280 MW site is expected to begin operations by 2026 and full capacity in 2027. APLD secured 900 acres and contracted power through Cass County Electric Cooperative. The expansion is expected to employ over 200 staff and long-term contractors. APLD's stock price jumped 6.5% to $16.78 in early trading hours.

Applied Digital (APLD), a leading provider of high-performance AI infrastructure, has announced plans to break ground on Polaris Forge 2, a $3 billion, 280-megawatt (MW) AI Factory near Harwood, North Dakota. The project, which is expected to begin initial operations in 2026 and reach full capacity by early 2027, represents a significant expansion of the company's AI infrastructure business [1].

The new campus, designed with the ability to scale beyond its initial 280 MW capacity, will employ over 200 full-time employees and long-term contractors. It is being developed on more than 900 acres with power secured through Cass County Electric Cooperative. The company is in advanced negotiations with a U.S.-based investment-grade hyperscaler for this campus, indicating strong commercial validation for this expansion [1].

This expansion follows the success of Applied Digital's Polaris Forge 1 Ellendale campus and reinforces North Dakota's position as a strategic destination for AI infrastructure. The strategic selection of North Dakota for this second major campus demonstrates Applied Digital's focus on locations with abundant power resources, favorable regulatory environments, and lower operating costs [1].

The phased deployment schedule – initial operations in 2026 and full capacity by early 2027 – provides a clear timeline for when this investment will begin generating revenue. The secured 900+ acres provide ample room for the initially planned two facilities plus future expansion, giving Applied Digital flexibility to scale as demand warrants. Their partnership with local utilities Cass County Electric Cooperative and Minnkota Power Cooperative suggests they've secured the critical power infrastructure needed for reliable operations – a key differentiator in the competitive AI infrastructure market [1].

The expansion is expected to employ over 200 full-time staff plus contractors, reflecting the significant computing capacity being built. The company has disclosed they're in advanced negotiations with a U.S.-based investment-grade hyperscaler as a potential anchor tenant, indicating strong commercial validation for this expansion [1].

The Greater Fargo Moorhead Economic Development Corporation (GFMEDC) works to cultivate an economic environment where all people and organizations flourish. "The Greater Fargo Moorhead EDC is excited about the opportunity to support this preliminary dynamic project for our region," stated Joe Raso, GFMEDC President & CEO. "Having worked with Applied Digital on various aspects of this project, including a recent visit to their Ellendale, ND, datacenter currently under construction, we can see the substantial economic benefit this project will have for the greater Fargo region" [1].

Applied Digital's stock price jumped 6.5% to $16.78 in early trading hours following the announcement. The company's planned $3 billion investment in the Polaris Forge 2 campus marks a substantial scaling of their AI infrastructure business [1].

References:
[1] https://www.stocktitan.net/news/APLD/applied-digital-to-break-ground-on-3-billion-polaris-forge-2-campus-b5zhjxaksjrw.html