Applied Digital Reports Fiscal Third Quarter 2026 Results

Data center operator sees 139% revenue growth, plans major expansion in North Dakota and the South

Apr. 8, 2026 at 8:05pm

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A photorealistic studio still-life photograph featuring a polished, geometric data center server rack made of brushed aluminum and chrome, floating on a clean, monochromatic background and illuminated by dramatic studio lighting to represent the abstract concepts of computing power, efficiency, and infrastructure.As demand for high-performance computing and AI infrastructure surges, Applied Digital's expansion plans highlight the intense competition and infrastructure buildout underway in the data center industry.Dallas Today

Applied Digital Corporation, a designer, builder, and operator of high-performance, sustainably engineered data centers, reported strong financial results for the fiscal third quarter of 2026, including a 139% increase in total revenues to $126.6 million. The company also provided updates on its ongoing expansion plans, including breaking ground on a new 430 MW AI Factory campus in the southern U.S. and securing $2.15 billion in financing for its Polaris Forge 2 project in North Dakota.

Why it matters

As demand for high-performance computing and AI infrastructure continues to surge, Applied Digital is positioning itself as a leading provider of large-scale, energy-efficient data center capacity to serve the needs of major hyperscale customers. The company's rapid growth and ambitious expansion plans highlight the intense competition and infrastructure buildout underway in the data center industry.

The details

Applied Digital's fiscal Q3 results were driven by strong performance in its HPC Hosting business, which generated $71 million in revenue, including $44.1 million from base rent, $18.9 million from tenant fit-out services, and $8.1 million from power pass-through and other ancillary revenue streams. The company's Data Center Hosting business, which serves cryptocurrency mining customers, also saw a 7% increase in revenue to $37.5 million. However, the company recorded a $59.7 million loss related to the reclassification of its Cloud Services business, which it plans to spin out through a business combination with EKSO Bionics. On the expansion front, Applied Digital broke ground on its 430 MW Delta Forge 1 campus in the southern U.S. and secured $2.15 billion in financing for its 200 MW Polaris Forge 2 project in North Dakota, which has already secured a long-term lease with an investment-grade hyperscaler tenant.

  • On July 4, Quinn allegedly dove onto the hood of a Waymo vehicle and covered sensors.
  • On July 29, Quinn allegedly damaged a Waymo's tires and driver's side mirror.
  • On August 11, Quinn allegedly stomped on a windshield while someone was inside.

The players

Applied Digital Corporation

A designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads.

Wes Cummins

Chairman and Chief Executive Officer of Applied Digital Corporation.

Polaris Forge 1

A data center campus operated by Applied Digital in North Dakota.

Polaris Forge 2

A 200 MW data center campus being developed by Applied Digital in North Dakota, with a long-term lease already secured with an investment-grade hyperscaler tenant.

Delta Forge 1

A new 430 MW AI Factory campus being developed by Applied Digital in the southern U.S.

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What they’re saying

“Applied Digital continues to differentiate itself in the high-power AI data center industry. Over two years ago, we were among the first to recognize the surging demand and broke ground on our first 100 MW facility. That early investment is now paying off.”

— Wes Cummins, Chairman and Chief Executive Officer

“We are seeing a clear acceleration in demand for high-performance AI data center capacity, with hyperscalers as aggressive as we have ever seen them. Just three months ago, we referenced approximately $400 billion in annual capital expenditures from the largest U.S. hyperscalers. That figure has now been reported to have increased to nearly $700 billion. We believe these enormous investments highlight the intense pressure on power and infrastructure and that these trends will only increase the long-term value of our high-quality, lower-cost sites like those we operate today.”

— Wes Cummins, Chairman and Chief Executive Officer

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Applied Digital's rapid expansion and strong financial performance demonstrate the company's ability to capitalize on the surging demand for high-performance computing and AI infrastructure, positioning it as a leading provider of sustainable, large-scale data center capacity to serve the needs of major hyperscale customers.