Applied Digital has transformed from a niche blockchain hosting operator into a specialized data center real estate platform for cloud, AI and high-performance computing clients. Since its 2022 pivot away from bitcoin miners, the company has focused on building large-scale campuses, commissioning power and cooling infrastructure, and leasing rack space to technology firms. Its approach positions the firm more as a real estate investment entity than a traditional technology provider, differentiating it from pure-play cloud or AI services companies.

To streamline its core hosting business and eliminate conflicts with major cloud clients, Applied Digital announced plans to spin off its in-house cloud service subsidiary, Sai Computing, via a merger to form a standalone publicly traded entity in H1 2026. This transaction preserves the company’s path toward a REIT conversion while concentrating on its data center campuses. Today, Applied Digital’s hosting arm boasts $16 billion in contracted lease payments over the next 15 years, with anchor commitments including a leading AI infrastructure provider. The firm also has approximately 700 MW of capacity under construction across multiple U.S. sites, slated to double its Polaris Forge 1 campus capacity over the coming years.

Analysts forecast Applied Digital’s fiscal 2026 revenue to climb 38% to roughly $297 million, driven by ramping lease occupancy, while net losses are expected to narrow to about $91 million. The company carries an enterprise value near $8 billion, implying a multiple of 27 times projected sales for the year—an elevated valuation relative to traditional data center REITs but reflective of its high-growth lease pipeline. Management contends that once annualized revenues exceed $1 billion from long-term contracts, the valuation will align more closely with peers in the data center real estate sector.