Applied Digital has shifted its focus to energy availability as a competitive asset, entering a collaboration with Babcock & Wilcox to deploy proven steam turbine technology in natural gas-fired plants. The company also led a $15 million funding round in Corintis to develop micro-channel cold plate systems aimed at improving thermal efficiency for next-generation GPU workloads.

The steam turbine initiative targets to shorten project delivery timelines—current gas turbines face delivery into the early 2030s—enabling faster power-on at Polaris campuses. Early power availability may accelerate lease commencements, boost utilization of contracted megawatts and enhance revenue visibility, while advanced cooling could sustain higher compute density per building.

Analysts project fiscal Q3 revenue of $75.06 million, a 41.8% increase year-over-year, as APLD leverages these energy strategies to underpin growth. Shares have climbed 148.6% over the past six months, but the stock trades at a forward 12-month price/sales of 21.62X—more than double the sector average—with a Value Score of F.

Applied Digital’s asset-heavy approach contrasts with Vertiv and nVent’s vendor models that offer power distribution and thermal management equipment with lower capital requirements. While an integrated campus model may speed energization, it also concentrates construction, permitting and utility coordination risks at each site.