- CoreWeave signed a $7B, 15-year lease for 250 MW of AI data center capacity with Applied Digital in North Dakota.
- Two new data centers are underway at Applied’s Ellendale campus, with optional expansion to a third 150 MW facility.
- The project is backed by Nvidia and Macquarie, with $900M already allocated to the Ellendale site.
- CoreWeave is rapidly scaling, following recent deals with Galaxy and a $4B partnership with OpenAI.
Big Bet On AI
CoreWeave, the AI cloud computing firm, is locking in serious long-term capacity, reports Bisnow. The company just signed a pair of 15-year lease agreements with Applied Digital to take 250 megawatts of computing capacity at the Ellendale, North Dakota campus—a site originally built for crypto mining and now pivoted toward AI infrastructure.
Buildout Timeline
Applied Digital plans to deliver the first 100 MW data center in Q4 2025, with a second 150 MW facility scheduled for mid-2026 completion. CoreWeave also holds an option for a third 150 MW building on the site, which could be operational by 2027.
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Financial Impact
The lease agreements are expected to bring in nearly $7B in total revenue for Applied Digital over the term. That kind of long-term commitment significantly boosts the company’s position as a serious infrastructure provider for AI and high-performance computing workloads.
The Power Behind The Build
Applied Digital, which recently announced plans to sell off its cloud business and restructure as a REIT, is backed by major institutional investors. Nvidia and Macquarie Asset Management have committed funding, including $900M targeted at Ellendale alone. The site currently totals 400 MW, with plans to scale beyond 1 GW.
CoreWeave’s Momentum
Since its IPO earlier this year, CoreWeave has signed a 250 MW lease with Galaxy and secured $750M in funding through a development JV with Blue Owl and others. It also closed a $4B deal with OpenAI and reported a 420% revenue spike in its first earnings call. The company’s share price has nearly tripled since going public.
Why It Matters
CoreWeave’s aggressive expansion—particularly in AI-specific capacity—signals how demand for purpose-built data center infrastructure is accelerating. The long-term nature of the leases also highlights growing confidence in sustained AI compute demand.
What’s Next
With hyperscale AI use cases driving development, expect continued growth in AI-specialized leasing, particularly from former crypto-focused firms repositioning themselves to meet high-performance cloud infrastructure demand.
