Oct 9 (Reuters) - Applied Digital ( APLD ) topped Wall

Street estimates for first-quarter revenue on Thursday, driven

by surging demand for its data center services as more customers

scale up computing to support fast-growing generative AI

applications.

Shares of the company rose 3.3% in extended trading.

Businesses are racing to deploy next-generation AI models,

driving demand for high-performance data center infrastructure

that can support intensive computing workloads.

Applied Digital ( APLD ) finalized a new lease agreement with

CoreWeave ( CRWV ) in August for an additional 150MW in North

Dakota.

This brings the total anticipated contracted lease revenue

to about $11 billion, which includes the $7 billion in revenue

from the initial two 15-year leases with CoreWeave ( CRWV ) announced

earlier this year.

In a note last week, Roth Capital said Applied Digital ( APLD ) could

potentially secure another high-performance computing (HPC)

colocation agreement by year-end.

The company's revenue rose 84% to $64.2 million for the

quarter ended August 31, compared with analysts' estimate of $50

million, according to data compiled by LSEG.

Applied Digital ( APLD ) reported an adjusted loss per share of 3

cents, smaller than the 13 cent loss expected by analysts.

The company generated $37.9 million in revenue from the Data

Center Hosting Business segment during the June-to-August

period.

Cost of revenues rose 144% to $55.6 million in the quarter.

About $25 million of the cost was associated with building and

preparing facilities for clients in the high-performance

computing hosting segment, the company said.