ABB Enhances Collaboration with Applied Digital in Power Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2025
0mins
Should l Buy APLD?
Partnership Expansion: ABB has expanded its partnership with Applied Digital to provide power infrastructure for a new AI Factory campus in North Dakota, focusing on medium voltage electrical systems for data centers.
Project Details: The Polaris Forge 2 campus will support 300 MW of AI data centers, with construction phased across two buildings set to open in 2026 and 2027, and is designed for future expansion.
Efficiency Goals: The collaboration aims to deliver advanced electrical architecture with high efficiency and a low Power Usage Effectiveness (PUE), positioning the campus as one of the most advanced AI facilities globally.
Financial Aspects: The financial details of the partnership remain undisclosed, with the second order booked in the fourth quarter of 2025 as part of a long-term agreement.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 36.600
Low
36.00
Averages
49.18
High
99.00
Current: 36.600
Low
36.00
Averages
49.18
High
99.00
About APLD
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and high-performance compute hosting (HPC Hosting Business). The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Customer-owned hardware is installed in its facilities, and the Company provides operational and maintenance services for a fixed fee. Its facilities include a 106 megawatt (MW) facility in Jamestown and a 180 MW facility in Ellendale, North Dakota. The HPC Hosting Business designs, builds, and operates data centers which are designed to support high-compute applications using advanced technologies and infrastructures to provide services to customers. Its HPC data center is located at its Polaris Forge 1 campus with 100 MW capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Data Center Expansion: The company is constructing data centers in North and South Dakota, with 700 megawatts already under construction and another 4.3 gigawatts in development, significantly enhancing its market share and revenue potential.
- Energy Advantage: By locating in areas with excess energy capacity, the company not only reduces operational costs but also benefits from the northern climate, which facilitates more efficient cooling of its systems.
- Market Valuation: Despite a high price-to-sales ratio of 32, indicating strong market expectations for future growth, the lack of profitability and clear earnings projections necessitates cautious evaluation of its long-term investment value.
See More
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- Customer Concentration Risk: The company is banking on $16 billion in future lease revenue primarily from two companies, with $11 billion from CoreWeave, another high-growth firm taking on substantial debt; if CoreWeave fails to meet its obligations, it could lead to catastrophic consequences for Applied Digital.
- Construction Timeline Pressure: Applied Digital must meet its construction deadlines or risk losing its leases, as CoreWeave can walk away penalty-free if Applied Digital falls behind schedule, adding extra pressure in the complex data center construction process and increasing investment uncertainty.
- Investment Risk Assessment: While there is significant upside potential if everything goes perfectly, the high levels of debt accrued by Applied Digital to compete raise the risk profile for investors, particularly in the current economic climate, leading to a cautious outlook on its future growth.
See More
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- High Customer Dependency: Of the projected $16 billion in future lease revenue, $11 billion comes from CoreWeave, meaning that any failure by CoreWeave to meet obligations could have catastrophic consequences for Applied Digital, amplifying investment risks.
- Construction Delay Concerns: The company's construction timeline is under pressure, and if it fails to meet deadlines, CoreWeave can walk away from leases penalty-free, creating uncertainty that undermines investor confidence.
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