Applied Digital Powers Up North Dakota While Laying the Groundwork for Its First European Site

Applied Digital reached 250 MW of operational capacity at its Ellendale campus and disclosed a first overseas venture of up to 1 GW in Finland.

Applied Digital has brought another 75 megawatts (MW) of critical IT load online at its Polaris Forge 1 campus in Ellendale, North Dakota, lifting the site's operational capacity to 250 MW. The milestone, confirmed on October 2, covers three new data halls and represents the second 75-MW phase tied to the campus's second building.

The entire Ellendale site is fully leased and is designed to reach 400 MW at full build-out. That domestic execution matters, because the company is simultaneously preparing to plant its flag abroad for the first time.

A Gigawatt-Scale Beachhead in Finland

On Tuesday, management disclosed an agreement securing access to as much as 1 gigawatt of potential power capacity in Finland — Applied Digital's first development venture outside the United States. Initial power allocations there are expected from 2028, and the company says it has already begun marketing the site while holding talks with hyperscale customers.

The logic behind the Nordic move is straightforward: power transmission routes and grid capacity have become a bottleneck across North America, and Finland's cheap, stable networks offer an attractive alternative. Until those projects start generating revenue, however, Applied Digital remains dependent on delivering its contracted capacity in North Dakota on schedule.

Analyst Targets Diverge as the Balance Sheet Weighs

Wall Street's response to the operational progress and the latest quarterly figures has been mixed. On Friday, Morgan Stanley's Stephen Byrd raised his price target on the stock from $37.50 to $41 while keeping an Equal Weight rating. A day earlier, Needham trimmed its target from $83 to $70 but maintained its Buy recommendation — a split that captures the market's awkward balancing act between undeniable potential and a valuation that must keep pace with reality.

The capital demands of building data center capacity at this scale are enormous. For the first quarter of fiscal 2027, Applied Digital reported revenue of $341.9 million alongside a net loss attributable to common shareholders of $221.0 million, or $0.76 per share. Adjusted EBITDA came in at $64.4 million, while the adjusted net loss was $4.1 million.

As of the August 31, 2026 balance sheet date, the company held cash, cash equivalents, and restricted funds totaling $3.7 billion — set against $6.4 billion in debt. That structure amounts to a sizable wager on the future: expensive infrastructure financed on borrowed money, with hyperscaler margins needing to keep flowing steadily enough to service the obligations.

Shareholders Left Waiting for the Payoff

The equity has felt the strain. Applied Digital closed Friday's session at EUR 21.16, down 6.1% over the past seven days and roughly 51% below its 52-week high of EUR 43.48. The early euphoria has given way to a visible sobriety.

Applied Digital has come to stand as a proxy for the broader AI infrastructure trade. Demand for computing capacity is beyond dispute, and the push into Europe underscores management's ambition. Yet with more than $6 billion in liabilities on the books and operating earnings not yet offsetting losses, the stock remains highly volatile — a profile that, in the near term, demands strong nerves from anyone along for the ride.