Applied Digital (APLD) Builds 430 MW Delta Forge 1 Data Center to Enhance AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Data Center Expansion: Applied Digital is constructing the Delta Forge 1 data center in the southern U.S. with a total capacity of 430 MW, initially comprising two 150 MW facilities expected to be operational by mid-2027, aimed at meeting the surging demand for AI workloads and enhancing operational certainty for customers.
- Strategic Market Positioning: While the exact location remains undisclosed, the strategic placement of Delta Forge 1 in the southern U.S. highlights the company's focus on the region's AI and high-performance computing needs, anticipated to create lasting value for local communities.
- Technological Integration Advantage: CEO Wes Cummins emphasized that the success of AI factories hinges on the effective integration of power, cooling, and operations, with this construction set to provide greater operational stability for clients, further solidifying its market position in AI infrastructure.
- Business Transformation: Transitioning from a cryptocurrency mining business, Applied Digital is also developing the Polaris Forge 1 data center in North Dakota, which will offer 400 MW of computing power, demonstrating the company's adaptability and growth potential in emerging markets.
Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLD is 49.18 USD with a low forecast of 36.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 35.060
Low
36.00
Averages
49.18
High
99.00
Current: 35.060
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.
