Applied Digital Polaris Forge 1: Delivered phases make lease conversion assessable
FJI source-qualified: four-document gate met, including project-specific government evidence. Qualification evidence and decisions →
Source qualification update · October 16, 2026
The state’s March 19, 2025 inspection account identifies the Ellendale HPC expansion. KVRR’s April 20, 2026 original reporting documents construction-related road concerns through local officials and a company response. These historical records support project context; they do not independently verify current IT load, customer acceptance or current road conditions. Ready-for-service capacity remains issuer-reported.
Project status: 250 MW issuer-reported Ready for Service on October 1, 2026; 400 MW contracted full buildout. Capacity scope: 250 MW issuer-reported Ready for Service; 400 MW contracted critical IT full buildout. How we verify evidence.
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← Back to project index- Location
- Ellendale, North Dakota — locality pin
- Readiness
- Operating
- Status
- 250 MW issuer-reported Ready for Service on October 1, 2026; 400 MW contracted full buildout
- Confirmed companies
- Applied Digital (APLD); CoreWeave (CRWV)
- Next milestone
- Remaining 150 MW building acceptance targeted in calendar 2027; phase rent and cash collection
- Reviewed
- October 6, 2026
Expanded analysis · Original disclosures linked below · CAD and USD preserved as labeled · Company statements attributed; interpretations labeled.
The one-minute investment takeaway
Our analysis: Delivered phases make lease conversion assessable. The key question has moved from whether an initial facility exists to how delivered phases contribute after costs. Property rent and reimbursed construction activities have different margin and cash profiles. Tenant concentration remains material even with contractual protection. The remaining 150 MW requires its own acceptance evidence and cannot be counted as live capacity. Track rent commencement by phase, cash collections and the owner’s capital still at risk. Shared site infrastructure should be allocated consistently rather than charged twice or omitted.
Readiness basis: Classification of evidence in the reviewed profile; strongest documented phase, not full-campus completion. 250 MW issuer-reported Ready for Service on October 1, 2026; 400 MW contracted full buildout Readiness source →
Delivery commitments and dated checkpoints
Scoped review · October 15, 2026. Earlier whole-profile and source-audit dates remain as recorded.
Applied Digital reported 250 MW of critical IT capacity ready for service at Polaris Forge 1 after the second 75 MW phase of Building 2 reached RFS on October 1, 2026. The milestone was announced October 2 and dated more precisely in the October 7 earnings release. The earlier July 1 delivery had brought the campus to 175 MW. The 400 MW contracted full-buildout scope remains separate: the October 7 filing describes the remaining 150 MW third building as under construction, with full RFS targeted in calendar 2027. These are attributed delivery disclosures, not independently metered utilization or proof of full-campus completion. Next: dated acceptance of the remaining phase and evidence of rent commencement and cash collection.
- Delivery chronology. The October 7 earnings release dates campus Ready for Service at 175 MW on July 1 and 250 MW on October 1, 2026. The latter milestone was announced October 2. These are cumulative issuer-reported critical IT quantities, not metered utilization. Operator / company disclosure · 2026-10-07
- Remaining phase. The October 7 Form 10-Q describes the third 150 MW building under construction, with full Ready for Service anticipated in calendar 2027. Operator / company disclosure · 2026-10-07
What the sources establish
- Delivered capacity. The October 2 release reports 250 MW of operational critical IT capacity after a further 75 MW delivery, against a 400 MW contracted campus. Primary source →
- Revenue composition. The July results distinguish recurring base rent, tenant fit-out services and recoveries. Construction-related revenue is not recurring rent. Primary source →
Who receives the money?
Our analysis of disclosed roles. Revenue routes are business-model interpretations, not estimates of booked project revenue.
| Company / exposure | Economic role | What investors need to establish |
|---|---|---|
| Applied Digital (APLD) | Operator / owner: property rent or computing service contribution according to the business model | Accepted phases, retained margin, financing and maintenance obligations. |
| Named customers or resource providers | Payments for contracted services or resource delivery where the source identifies a relationship | Confirm scope and contracts; broad ecosystem demand does not establish a supplier order. |
| Other contractors and equipment suppliers | Potential construction and refresh receipts | Do not assign undisclosed vendors, earnings or contract values. |
How financially meaningful is it?
Our analysis: The key question has moved from whether an initial facility exists to how delivered phases contribute after costs. Property rent and reimbursed construction activities have different margin and cash profiles. Tenant concentration remains material even with contractual protection. The remaining 150 MW requires its own acceptance evidence and cannot be counted as live capacity. Track rent commencement by phase, cash collections and the owner’s capital still at risk. Shared site infrastructure should be allocated consistently rather than charged twice or omitted.
Owner cash contribution = recurring rent and retained service margin less property operating costs, maintenance, interest and common infrastructure spending.
Hypothetical illustration: At an assumed USD 100/kW-month, 25 MW adds USD 30 million of annual gross rent before costs. This is a sensitivity, not the Applied Digital lease rate.
Milestones that would change the assessment
| Milestone | Evidence to watch |
|---|---|
| Evidence of delivery | A dated phase acceptance record showing usable equipment, power and cooling; separate previous targets from observed completion. |
| Recurring economics | Remaining 150 MW building acceptance targeted in calendar 2027; phase rent and cash collection |
| Capital and operating reconciliation | Separate property construction, computing hardware, reimbursed costs and financing; distinguish operating cash receipts from revenue recognition. |
What could break the investment case?
Our analysis: Delayed final delivery, concentrated tenant exposure, debt servicing and maintenance can reduce owner returns. Ready for Service establishes infrastructure delivery, not the utilization or profitability of every GPU.
What would change our view?
Our analysis: Phase-specific customer acceptance, sustained useful workloads and cash generation after recurring costs would strengthen our assessment. Missed acceptance, deteriorating margins or additional capital required without equivalent contract protection would weaken it. A larger design envelope alone would not change the operating assessment.
What remains unknown
Current phase utilization, site-specific cash flow, customer acceptance detail, actual tariff, measured PUE, maintenance obligations and incremental capital returns are not fully disclosed in the reviewed sources. Coordinates represent the named locality or campus vicinity, not a surveyed building. A target date is not a verified completion. Readiness means the documented state above; no blanket “shovel ready” designation is inferred from a marketing page.
Project research for information, not a buy recommendation. Financial illustrations use assumptions, not disclosed site results or management guidance.
Spotlight source audit
Reviewed October 6, 2026. Three reviewed documents from two publishers. The capacity milestone is attributed to Applied Digital; Reuters corroborates the lease context, not the latest physical delivery.
- Applied Digital · 2026-10-02Primary · Operator disclosure — Reports 75 MW added, 250 MW operating critical IT load and 400 MW contracted at full buildout.
- Applied Digital · 2026-07-01Primary · Earlier delivery record — Reports the prior 175 MW operating total; a separate milestone document from the same issuer, not independent verification.
- Reuters · 2025-06-02Independent journalism · Lease context — Reports the original CoreWeave leases. Provides relationship and financial context, not confirmation of the October 2026 operating total.
Related news & reporting history →
Company investor information & quarterly statements
Applied Digital
Project participant recorded in reviewed project profile; consolidated corporate disclosure only
Official investor & shareholder information · Quarterly financial statements: Q1 FY2027 ended August31,2026
CoreWeave
Project participant recorded in reviewed project profile; consolidated corporate disclosure only
Official investor & shareholder information · Quarterly financial statements: Q2 2026 ended2026-06-30
Corporate disclosures provide company-wide context. They do not establish this project’s revenue, spending, profit, ownership share or operating capacity. Disclosure verification records →