The AI sector is witnessing a significant transformation as companies focus on improving data center infrastructure rather than just developing advanced chips. Major cloud providers and hyperscalers are now prioritizing investments in data centers equipped with high power density and advanced cooling systems to overcome current growth challenges.
Among the key players, Applied Digital (NASDAQ: APLD) is emerging prominently, with expectations of generating nearly $16 billion in lease revenue within the next 15 years from its Polaris Forge campuses in North Dakota. The firm has secured contracts for about 600 megawatts of data center capacity, including 400 megawatts leased to CoreWeave. Additionally, 200 megawatts at Polaris Forge 2 has been committed to an unnamed hyperscaler.
Applied Digital is also advancing the Delta Forge 1 project, which will feature a 430-megawatt data center, reflecting a strong outlook for ongoing demand. In its second fiscal quarter of 2026, ending November 30, 2025, the company reported an impressive 250% increase in revenue year-over-year, totaling $126.6 million. Analysts forecast revenues could reach approximately $346.7 million in fiscal 2026 and around $546 million in fiscal 2027.