Applied Digital has officially commenced construction on its Delta Forge 1 AI Factory campus in the U.S. South, a purpose-built facility designed to deliver 430 MW of dedicated AI capacity. The company expects the campus to enter service in mid-2027, leveraging modular designs and prefabricated components to accelerate delivery and reduce per-megawatt build costs. This project reflects Applied Digital’s strategy to meet surging demand for specialized AI infrastructure and positions the firm to capture a growing share of hyperscaler and enterprise workloads.

Shares of Applied Digital surged by 8.49% on January 23, driven by the AI Factory announcement. Trading volume reached approximately 47.5 million shares, about 52% above its three-month average, underlining heightened investor interest. The rally follows a year in which the company’s stock appreciated over 300% and comes as analysts at Texas Capital upgraded their rating to Strong Buy, while Roth Capital and Needham reiterated Buy recommendations based on the company’s accelerating growth trajectory.

Applied Digital has already secured long-term leases for 600 MW of capacity across its North Dakota campuses, representing $16 billion in potential lease revenue over the next 15 years. The firm has invested more than $1 billion to ready its first 100 MW for service, and line-of-sight agreements or land control total over 4.3 GW of additional capacity. Management forecasts expanding total capacity to 5 GW within five years, as rising demand for AI-specific data center services—projected to grow 3.5-fold by 2030—continues to outpace supply.