Applied Digital’s (APLD) stock is up 15% on Aug. 18 after the data center company announced plans to develop a new $3 billion artificial intelligence (AI) campus in North Dakota.
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Construction on the AI campus is expected to begin in September of this year and help the company meet surging demand for computing power. The new campus will be home to 280 megawatts worth of data centers and is expected to be fully operational in 2027.
The new campus builds on Applied Digital’s existing facilities located in and around Ellendale, North Dakota. The company’s new campus will be built on about 900 acres. Once fully operational, the new site is expected to create 200 full-time jobs within the state.
Hyperscalers
Applied Digital CEO Wes Cummins said in a news release that the company is in “advanced negotiations with a U.S. based investment-grade hyperscaler” for use of the new AI campus, suggesting potential customer commitments are in the works.
The new campus is being built as demand for AI computing infrastructure continues to accelerate from hyperscalers, enterprises, and research organizations. Applied Digital designs and operates data centers for AI, cloud computing, and blockchain workloads. APLD stock is up 112% this year.
Is APLD Stock a Buy?
The stock of Applied Digital has a consensus Strong Buy rating among 10 Wall Street analysts. That rating is based on nine Buy and one Hold recommendations issued in the last three months. The average APLD price target of $17.45 implies 8.32% upside from current levels.
