CoreWeave Stock Surges 25% on $7 Billion AI Infrastructure Deal

CoreWeave, a prominent cloud computing firm, has secured a significant infrastructure deal with Applied Digital, marking a pivotal moment in the AI and high-performance computing (HPC) sectors. The agreement involves two 15-year lease contracts for 250MW of IT load at Applied Digital’s Ellendale, North Dakota data center campus, with options for an additional 300MW. The first phase of the project, 100MW, is scheduled to go live in the fourth quarter of 2025, followed by a 150MW facility in mid-2026. This strategic move is expected to generate $7 billion in total revenue for Applied Digital, underscoring the substantial investment and potential growth in the AI and HPC infrastructure space.

CoreWeave’s stock experienced a notable surge, climbing 25% on Tuesday and an additional 5% in pre-market trading, reflecting investor optimism around the deal. This brings CoreWeave’s year-to-date gains to an impressive 276%, driven by the surging demand for AI capabilities. The Ellendale campus, designed to host 400MW of critical IT load, is poised to leverage over 1GW of power capacity, further solidifying its role as a key player in the AI infrastructure landscape. CEO Wes Cummins of Applied Digital highlighted the agreement as a major step in cementing the company’s position in the AI and HPC infrastructure space. The recent $375 million financing from SMBC is expected to accelerate the development of this ambitious project, further fueling investor confidence and market enthusiasm.

This deal signifies a strategic alignment between CoreWeave and Applied Digital, leveraging the latter’s extensive data center infrastructure to support CoreWeave’s expanding AI and HPC capabilities. The Ellendale campus, with its substantial power capacity, provides a robust foundation for CoreWeave to meet the growing demand for AI services. The phased rollout, starting with 100MW in Q4 2025 and expanding to 150MW in mid-2026, ensures a gradual and sustainable increase in capacity, aligning with market needs and technological advancements. The options for additional 300MW capacity further demonstrate the companies’ forward-thinking approach, preparing for future growth and innovation in the AI sector.

The $7 billion revenue projection from this deal underscores the financial viability and potential returns from investing in AI and HPC infrastructure. Applied Digital’s Ellendale campus, with its 400MW critical IT load and over 1GW of power capacity, is well-positioned to support the escalating demand for AI services. The strategic leasing agreements and the phased implementation plan reflect a well-thought-out approach to infrastructure development, ensuring that CoreWeave can scale its operations efficiently and effectively. The recent financing from SMBC further bolsters Applied Digital’s ability to execute this ambitious project, driving growth and innovation in the AI and HPC sectors.