Applied Digital Signs Electric Service Agreement with MDU Resources
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 hours ago
0mins
Source: seekingalpha
- Electric Service Agreement: Applied Digital has signed an electric service agreement with MDU Resources' subsidiary Montana-Dakota Utilities for its Polaris Forge 3 AI campus, which is expected to require 430 MW of power at full capacity, with initial operations slated to begin in August 2027, indicating the company's commitment to expanding AI infrastructure in North Dakota.
- Economic Impact: The project is anticipated to create approximately 200 jobs and support long-term economic growth in the surrounding region, highlighting the company's positive contribution to local economic development, despite facing regulatory approval challenges.
- Market Reaction: Despite the announcement of the electric service agreement, APLD shares opened 4% lower at $96.10, reflecting a cautious market sentiment that may impact investor confidence regarding the project's viability.
- Long-term Strategic Positioning: The Polaris Forge 3 project is backed by a 15-year lease with a U.S.-based investment-grade hyperscaler, demonstrating the company's strategic investment in the AI sector to meet the increasing market demand.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 45.200
Low
36.00
Averages
52.22
High
99.00
Current: 45.200
Low
36.00
Averages
52.22
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.
Applied Digital Signs Electric Service Agreement with MDU Resources
- Electric Service Agreement: Applied Digital has signed an electric service agreement with MDU Resources' subsidiary Montana-Dakota Utilities for its Polaris Forge 3 AI campus, which is expected to require 430 MW of power at full capacity, with initial operations slated to begin in August 2027, indicating the company's commitment to expanding AI infrastructure in North Dakota.
- Economic Impact: The project is anticipated to create approximately 200 jobs and support long-term economic growth in the surrounding region, highlighting the company's positive contribution to local economic development, despite facing regulatory approval challenges.
- Market Reaction: Despite the announcement of the electric service agreement, APLD shares opened 4% lower at $96.10, reflecting a cautious market sentiment that may impact investor confidence regarding the project's viability.
- Long-term Strategic Positioning: The Polaris Forge 3 project is backed by a 15-year lease with a U.S.-based investment-grade hyperscaler, demonstrating the company's strategic investment in the AI sector to meet the increasing market demand.
See More
MDU Resources and Applied Digital Sign Electric Service Agreement
- Electric Service Agreement: MDU Resources' subsidiary Montana-Dakota Utilities has signed an electric service agreement with Applied Digital to supply power to the Polaris Forge 3 AI factory in North Dakota, which will require 430 megawatts at full capacity, indicating strong demand for high-density AI workloads.
- Operational Launch Timeline: Applied Digital anticipates initial operations at Polaris Forge 3 to commence in August 2027, highlighting the company's rapid expansion in North Dakota to meet increasing market demands.
- Job Creation and Tax Revenue: The project is expected to create approximately 200 full-time jobs and generate significant property tax revenue for Oliver County and the surrounding region, demonstrating the company's positive impact on the local economy and its commitment to community responsibility.
- Regulatory Approval Requirement: The electric service agreement requires approval from the North Dakota Public Service Commission, reflecting the company's dedication to compliance and sustainable development while providing reliable power services to large energy users.
See More
Analysis of Applied Digital's Potential to Triple by 2030
- Growing Market Demand: Applied Digital specializes in building data centers for AI processing, with Goldman Sachs projecting that U.S. data center energy demand will double next year, indicating strong growth potential that could significantly boost future revenues.
- Optimistic Revenue Projections: The company anticipates at least $36 billion in lifetime lease revenue from existing contracts, potentially reaching $86 billion, which supports long-term financial health and enhances investor confidence.
- Improving Financial Performance: Despite a 139% year-over-year revenue increase in Q3, the company reported a net loss of $101 million, indicating that while it is expanding rapidly, profitability has yet to be achieved, necessitating attention to future profit transitions.
- Valuation Risk: With a price-to-sales ratio of 31, Applied Digital is currently highly valued, and any market fluctuations or customer contract changes could lead to significant stock price corrections, prompting investors to carefully assess the associated risks.
See More
Applied Digital's Future Potential and Risks
- Market Outlook: Applied Digital focuses on building data centers for artificial intelligence, with projections indicating that U.S. data center energy demand will double next year, highlighting the sector's immense potential, despite the company not yet being profitable and carrying significant debt.
- Significant Revenue Growth: The company reported a 139% year-over-year revenue increase in Q3, although it posted a net loss of $101 million, which is a 179% improvement compared to last year, indicating a positive trend in contract signings and revenue growth.
- Contract Revenue Expectations: Applied Digital anticipates at least $36 billion in lifetime lease revenue from its contracts, with potential earnings reaching up to $86 billion, suggesting that continued contract signings could lead to revenues exceeding these projections.
- Valuation Risk Warning: Despite the optimistic outlook, the company's price-to-sales ratio stands at a high 31, indicating overvaluation; thus, if market fluctuations occur or a customer backs out, the stock price could face significant downward pressure.
See More
Enphase Energy Shares Surge Following Production Announcement
- Enphase Energy Surge: Enphase Energy's shares jumped 10% after announcing the commencement of production shipments for its IQ9S microinverters, indicating strong growth potential in the global energy technology sector.
- AI-Related Stocks Rally: Stocks tied to artificial intelligence and data center infrastructure saw significant gains, with Corning up 7% and Credo Technology rising 5%, reflecting ongoing investor optimism in AI technologies.
- Kroger Earnings Miss: Kroger reported first-quarter earnings of $1.58 per share, slightly below analysts' expectations of $1.59, resulting in a more than 6% drop in stock price, despite revenue of $46.12 billion exceeding forecasts.
- Smith & Wesson Performance: Smith & Wesson's stock surged approximately 20% after reporting earnings and revenue beats, with handgun sales increasing 23% year-over-year, highlighting strong demand in the firearms market.
See More
The Digital Arms Race: Defense Data Centers as Critical Infrastructure
- Importance of Defense Data Centers: With rapid advancements in AI and cybersecurity, the defense data center market was valued at approximately $12.5 billion in 2025 and is projected to exceed $64 billion by 2033, highlighting the growing significance of advanced computing in safeguarding national interests.
- AI Applications: Military institutions are leveraging AI platforms to quickly analyze surveillance footage and satellite images, enhancing mission planning and decision-making efficiency, with the aerospace and defense AI market expected to grow from $24.5 billion in 2024 to over $43 billion by 2030.
- Cybersecurity Demand: The increasing need for highly secure data centers to protect classified information and defend against cyber threats is evident, with the military cloud computing market projected to expand from $12.8 billion in 2024 to $34.2 billion by 2034, underscoring the strategic importance of secure data infrastructure.
- VisionWave's Project Progress: VisionWave Holdings has signed a term sheet with Lucky Whale for a proposed Tier IV data center in Israel, with an estimated share payment of $40 million, granting VisionWave approximately 51% effective interest, further solidifying its position in the data center market.
See More
Applied Digital Signs Electric Service Agreement with MDU Resources
- Electric Service Agreement: Applied Digital has signed an electric service agreement with MDU Resources' subsidiary Montana-Dakota Utilities for its Polaris Forge 3 AI campus, which is expected to require 430 MW of power at full capacity, with initial operations slated to begin in August 2027, indicating the company's commitment to expanding AI infrastructure in North Dakota.
- Economic Impact: The project is anticipated to create approximately 200 jobs and support long-term economic growth in the surrounding region, highlighting the company's positive contribution to local economic development, despite facing regulatory approval challenges.
- Market Reaction: Despite the announcement of the electric service agreement, APLD shares opened 4% lower at $96.10, reflecting a cautious market sentiment that may impact investor confidence regarding the project's viability.
- Long-term Strategic Positioning: The Polaris Forge 3 project is backed by a 15-year lease with a U.S.-based investment-grade hyperscaler, demonstrating the company's strategic investment in the AI sector to meet the increasing market demand.
See More
MDU Resources and Applied Digital Sign Electric Service Agreement
- Electric Service Agreement: MDU Resources' subsidiary Montana-Dakota Utilities has signed an electric service agreement with Applied Digital to supply power to the Polaris Forge 3 AI factory in North Dakota, which will require 430 megawatts at full capacity, indicating strong demand for high-density AI workloads.
- Operational Launch Timeline: Applied Digital anticipates initial operations at Polaris Forge 3 to commence in August 2027, highlighting the company's rapid expansion in North Dakota to meet increasing market demands.
- Job Creation and Tax Revenue: The project is expected to create approximately 200 full-time jobs and generate significant property tax revenue for Oliver County and the surrounding region, demonstrating the company's positive impact on the local economy and its commitment to community responsibility.
- Regulatory Approval Requirement: The electric service agreement requires approval from the North Dakota Public Service Commission, reflecting the company's dedication to compliance and sustainable development while providing reliable power services to large energy users.
See More
Analysis of Applied Digital's Potential to Triple by 2030
- Growing Market Demand: Applied Digital specializes in building data centers for AI processing, with Goldman Sachs projecting that U.S. data center energy demand will double next year, indicating strong growth potential that could significantly boost future revenues.
- Optimistic Revenue Projections: The company anticipates at least $36 billion in lifetime lease revenue from existing contracts, potentially reaching $86 billion, which supports long-term financial health and enhances investor confidence.
- Improving Financial Performance: Despite a 139% year-over-year revenue increase in Q3, the company reported a net loss of $101 million, indicating that while it is expanding rapidly, profitability has yet to be achieved, necessitating attention to future profit transitions.
- Valuation Risk: With a price-to-sales ratio of 31, Applied Digital is currently highly valued, and any market fluctuations or customer contract changes could lead to significant stock price corrections, prompting investors to carefully assess the associated risks.
See More
Applied Digital's Future Potential and Risks
- Market Outlook: Applied Digital focuses on building data centers for artificial intelligence, with projections indicating that U.S. data center energy demand will double next year, highlighting the sector's immense potential, despite the company not yet being profitable and carrying significant debt.
- Significant Revenue Growth: The company reported a 139% year-over-year revenue increase in Q3, although it posted a net loss of $101 million, which is a 179% improvement compared to last year, indicating a positive trend in contract signings and revenue growth.
- Contract Revenue Expectations: Applied Digital anticipates at least $36 billion in lifetime lease revenue from its contracts, with potential earnings reaching up to $86 billion, suggesting that continued contract signings could lead to revenues exceeding these projections.
- Valuation Risk Warning: Despite the optimistic outlook, the company's price-to-sales ratio stands at a high 31, indicating overvaluation; thus, if market fluctuations occur or a customer backs out, the stock price could face significant downward pressure.
See More
Enphase Energy Shares Surge Following Production Announcement
- Enphase Energy Surge: Enphase Energy's shares jumped 10% after announcing the commencement of production shipments for its IQ9S microinverters, indicating strong growth potential in the global energy technology sector.
- AI-Related Stocks Rally: Stocks tied to artificial intelligence and data center infrastructure saw significant gains, with Corning up 7% and Credo Technology rising 5%, reflecting ongoing investor optimism in AI technologies.
- Kroger Earnings Miss: Kroger reported first-quarter earnings of $1.58 per share, slightly below analysts' expectations of $1.59, resulting in a more than 6% drop in stock price, despite revenue of $46.12 billion exceeding forecasts.
- Smith & Wesson Performance: Smith & Wesson's stock surged approximately 20% after reporting earnings and revenue beats, with handgun sales increasing 23% year-over-year, highlighting strong demand in the firearms market.
See More
The Digital Arms Race: Defense Data Centers as Critical Infrastructure
- Importance of Defense Data Centers: With rapid advancements in AI and cybersecurity, the defense data center market was valued at approximately $12.5 billion in 2025 and is projected to exceed $64 billion by 2033, highlighting the growing significance of advanced computing in safeguarding national interests.
- AI Applications: Military institutions are leveraging AI platforms to quickly analyze surveillance footage and satellite images, enhancing mission planning and decision-making efficiency, with the aerospace and defense AI market expected to grow from $24.5 billion in 2024 to over $43 billion by 2030.
- Cybersecurity Demand: The increasing need for highly secure data centers to protect classified information and defend against cyber threats is evident, with the military cloud computing market projected to expand from $12.8 billion in 2024 to $34.2 billion by 2034, underscoring the strategic importance of secure data infrastructure.
- VisionWave's Project Progress: VisionWave Holdings has signed a term sheet with Lucky Whale for a proposed Tier IV data center in Israel, with an estimated share payment of $40 million, granting VisionWave approximately 51% effective interest, further solidifying its position in the data center market.
See More
