Applied Digital Corp ( APLD ) shares are trading higher Monday after the company announced long-term lease agreements with CoreWeave Inc ( CRWV ) .

What Happened: Applied Digital ( APLD ) announced Monday that it entered into two lease agreements, spanning approximately 15 years, with AI hyperscaler CoreWeave ( CRWV ) to deliver 250 megawatts (MW) of critical IT load to host the company’s AI and high-performance computing infrastructure at its data center site in North Dakota.

CoreWeave ( CRWV ) will have the option to add an additional 150 MW of IT load at the data center location. Applied Digital ( APLD ) expects to generate approximately $7 billion in revenue from leases over the 15-year contract period.

“We believe these leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing,” said Wes Cummins, chairman and CEO of Applied Digital ( APLD ).

“As demand for AI accelerates exponentially, we believe that we are uniquely positioned to deliver substantial returns while supporting the evolving and dynamic needs of these rapidly evolving sectors.”

Applied Digital ( APLD ) expects its first 100 MW data center for CoreWeave ( CRWV ) to be ready for service in the fourth quarter of 2025. The second 150 MW data center facility is currently under construction and is slated to be ready for service in mid-2026. A third 150 MW data center is in the planning stages and would be ready for service in 2027 if CoreWeave ( CRWV ) decides to execute its option for the additional site.

Applied Digital’s site is designed to host 400 MW of critical IT load in total, but the company said it could expand the campus to up to one gigawatt of total power capacity to support additional infrastructure development.

APLD Price Action: Applied Digital ( APLD ) shares were up 22.0% at $8.33 at the time of publication Monday, according to Benzinga Pro. CoreWeave ( CRWV ) shares were up about 4.59% at last check.

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