CoreWeave Inc. ( CRWV ) shares are trading higher Tuesday, extending gains after the company entered into a major long-term infrastructure agreement with Applied Digital Corp ( APLD ) .

What To Know: The deal, announced on Monday, involves two 15-year lease agreements through which Applied Digital ( APLD ) will provide 250 megawatts of critical IT load to support CoreWeave's ( CRWV ) AI and high-performance computing operations at a data center campus in North Dakota.

The agreement includes an option for CoreWeave ( CRWV ) to expand its presence at the facility with an additional 150 megawatts of IT load, potentially raising the total commitment to 400 megawatts. Applied Digital ( APLD ) projects that it will generate approximately $7 billion in revenue from the contracts over the duration of the leases.

The site's first 100-megawatt capacity is expected to be operational by the fourth quarter of 2025, with an additional 150-megawatt phase scheduled for mid-2026. A third expansion phase, which would raise the facility's total load to 400 megawatts, is currently in planning and would be ready in 2027 if CoreWeave ( CRWV ) exercises its option.

The move signals CoreWeave's ( CRWV ) ongoing expansion as a key infrastructure provider in the rapidly growing AI computing market. The company specializes in delivering GPU-accelerated compute for AI workloads and the Applied Digital ( APLD ) partnership is viewed as a major step in scaling its operational footprint.

Investor enthusiasm around the deal helped drive a sharp rally in CoreWeave's ( CRWV ) stock price as traders priced in the potential long-term value of the agreement amid rising demand for AI infrastructure. Applied Digital ( APLD ) shares also surged more than 45% on Monday following the news, reflecting positive sentiment throughout the AI infrastructure sector.

CRWV Price Action: CoreWeave ( CRWV ) shares were up 23.5% at $148.49 at the time of publication Tuesday, according to Benzinga Pro.

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