Applied Digital (APLD) is continuing to grow its data center business by beginning construction of its newest project, Delta Forge 1. More specifically, this will be a large data center campus capable of supplying 430 megawatts of power and will be located somewhere in the southern United States. While the exact location was not disclosed, CEO Wes Cummins said that the project is an important next step for the company.
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Initially, Delta Forge 1 will include two data center buildings, each capable of handling 150 megawatts, spread across a 500-acre site. Importantly, the campus is designed to expand over time as customer needs grow, especially from large cloud and AI users. Applied Digital also expects the facility to be fully operational by mid-2027 and believes it will provide reliable service to customers while delivering long-term benefits to the local community.
Meanwhile, Applied Digital is already making progress on another major project known as Polaris Forge 1 in North Dakota. The site is planned to reach a total capacity of 400 megawatts, and importantly, the first 100 megawatts are already online. Interestingly, like Core Scientific (CORZ), CoreWeave (CRWV), and Hut 8 (HUT), Applied Digital has shifted from its crypto-mining roots to focus on building data centers for AI and high-performance computing.
Is APLD Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on APLD stock based on 11 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average APLD price target of $49 per share implies 43.4% upside potential.
