Applied Digital (APLD) Investor presentation summary

Strategic growth and expansion

• Transitioned from blockchain-focused data centers to high-performance computing (HPC) and AI infrastructure, securing major long-term leases with investment-grade hyperscalers for over 1.4 GW of IT capacity, with all major sites contracted through 2028.

• Secured $36 billion in contracted lease value, with potential expansion to $86 billion if all renewal options are exercised, and expects average annualized NOI of ~$2 billion under 15-year leases.

• Multi-gigawatt power pipeline and deep hyperscaler relationships position the company for sustained long-term growth, targeting 3 GW of total capacity by 2031.

• Raised significant capital, including $160 million from institutional investors and NVIDIA, $450 million in convertible notes, and up to $5 billion in funding from Macquarie Asset Management.

Market trends and demand drivers

• AI and HPC workloads are driving exponential increases in compute and power requirements, with next-generation chips demanding up to 1,200 kW per rack by 2030.

• Data center construction spending has tripled since 2022, with global demand for capacity projected to triple by 2030 and U.S. power shortages expected to exceed 45 GW.

• Hyperscaler capex is estimated to surpass $700 billion annually by 2027, outpacing historical infrastructure megaprojects.

• Supply chain and power availability are key constraints, with critical equipment lead times extending up to 96 weeks and new power generation projects requiring multi-year build times.

Operational platform and structural advantages

• Standardized, scalable AI factory design enables rapid deployment of 150 MW data centers in 14-18 months, with low water usage and support for both air- and liquid-cooled configurations.

• Locations in North Dakota and Louisiana offer abundant, low-cost energy, favorable climate for free cooling, and access to major fiber networks, reducing operational costs and latency.

• Long-term supply chain partnerships and modular construction methods reduce delivery risk and support rapid scaling.

• Vertical integration through partnerships like Base Electron and ChronoScale ensures reliable power origination and dedicated compute environments for AI workloads.