CoreWeave, the Nvidia-backed cloud computing powerhouse, stunned the market this week with a $7 billion, 15-year data center deal with Applied Digital, sending both companies’ stocks to new highs. CoreWeave’s stock (CRWV) surged over 25% on the news and continued climbing, now boasting a year-to-date gain of more than 275% Applied Digital (APLD) shares soared as much as 54% in a single day, closing up nearly 48% at $10.14 and maintaining momentum throughout the week.
The agreement grants CoreWeave 250 megawatts of IT capacity at Applied Digital’s Ellendale, North Dakota campus, with options for an additional 300MW as demand for AI infrastructure accelerates The first data center is set to go live in late 2025, with a second facility following in mid-2026 This long-term partnership locks in a predictable revenue stream for Applied Digital, which expects to generate $7 billion over the life of the contracts—transforming its outlook and positioning it as a key player in the AI data center space.
Investor optimism is high, with analysts raising Applied Digital’s price targets and highlighting the strategic significance of this deal for both companies. As hyperscale AI demand continues to climb, the CoreWeave-Applied Digital partnership is being watched closely as a bellwether for the sector’s next phase of growth.
