Applied Digital (APLD) Investor Presentation summary

Strategic direction and business model

• Focuses on designing, building, and operating high-performance, sustainable data centers for AI, cloud, networking, and blockchain workloads, with a strong presence in North Dakota and rapid expansion plans.

• Transitioned from blockchain data centers to high-performance computing (HPC) and AI, securing long-term leases with major hyperscalers and expanding its AI Factory footprint.

• Markets over 4 GW of accessible power, with 700 MW under construction and 600 MW already contracted on long-term leases.

• Prioritizes economic opportunities in underserved communities and leverages proprietary waterless cooling and rapid deployment capabilities.

• Leadership team brings deep experience in technology, finance, operations, and compliance.

Data center projects and contracts

• Polaris Forge 1 campus in Ellendale, ND, is a 400 MW AI Factory with three buildings, all under long-term lease to CoreWeave, unlocking $11B in anticipated revenue over 15 years.

• Polaris Forge 2 in Harwood, ND, is a 300 MW campus, with 200 MW contracted to an investment-grade hyperscaler, expected to generate $5B in revenue over 15 years.

• Both campuses use advanced closed-loop liquid cooling and are designed for high-density GPU clusters, with expected site NOI margins of 86–88%.

• Active development pipeline exceeds 4 GW, with land and power agreements in place for further expansion.

Market trends and industry context

• AI and HPC workloads are driving exponential increases in compute and power demand, with next-gen GPUs requiring up to 120 kW per rack.

• Global data center demand is projected to triple by 2030, with U.S. power shortages expected to exceed 45 GW.

• Data center construction spending has tripled since 2022 and is set to surpass office construction.

• Hyperscalers are shifting data center investments inland, with North Dakota offering abundant, low-cost energy and favorable climate for cooling.