### Applied Digital and CoreWeave Ink Major Lease Agreements, Stocks Surge

Applied Digital's shares soared by about 48% on Monday following the announcement of two significant long-term lease agreements with CoreWeave for the establishment of artificial intelligence data centers. CoreWeave, which is supported by Nvidia, experienced an 8% rise in its stock price as a result of the deals.

Under the terms of the agreements, Applied Digital projects approximately $7 billion in rental revenue over a 15-year period. Lease payments are stipulated upfront and will include an annual escalator, irrespective of the project's expenses. Wes Cummins, the Chief Executive of Applied Digital, highlighted that these agreements significantly further the company's strategic goal of enhancing its advanced compute infrastructure.

These newly inked deals will see CoreWeave installing AI and high-performance computing hardware at Applied Digital's new data center campus situated in Ellendale, North Dakota. The campus is set to supply a critical IT load of 250 megawatts, with the potential to expand to 400 megawatts. The leases cover two data cell blocks, specifically a 100 MW block and a 150 MW block, with an optional third block of another 150 MW.

CoreWeave's stock has seen impressive performance, reaching a record high of $130.76 on May 29, after beginning trading at $39 on March 28.