New York, Jan 24, 2026, 09:03 EST — Market closed.
- Applied Digital shares jumped 8.5% Friday, following the announcement of groundbreaking for a new “AI Factory” campus
- The project aims to deliver 430 megawatts of utility power, with operations set to begin by mid-2027
- Attention turns to tenant negotiations, financing cues, and the Fed’s decision next week alongside major tech earnings
Applied Digital Corporation’s shares jumped 8.49% to close at $37.69 on Friday, following the company’s announcement that it has started construction on a 430-megawatt AI campus. The stock dipped 0.72% in after-hours trading and fluctuated between $33.216 and $39.00 throughout the day. 1
Investors are zeroing in on a key choke point in the AI rollout: power. Data centers packed with AI chips now count megawatts—the measure of electrical capacity—as their critical metric.
Small developers often face big swings when they reveal progress on sites, utility power, and customer commitments. The market is essentially pricing future contracted capacity—well before the buildings are even completed.
Applied Digital announced Thursday it has begun construction on Delta Forge 1, an “AI Factory” campus located in a key southern U.S. market. The facility is planned to deliver 430 MW of total utility power, supporting up to 300 MW of “critical IT load” — the power dedicated to running servers — with operations slated to start by mid-2027. “AI Factories succeed or fail based on how effectively power, cooling and operations are integrated,” said chairman and CEO Wes Cummins. 2
The company said it is moving forward with the project, engaged in talks with “another prospective investment-grade hyperscale customer” — hyperscalers being large cloud operators that purchase capacity in bulk — but did not disclose the customer’s identity or the exact location.
U.S. markets remain closed until Monday, Jan. 26, leaving traders to wonder if the rally will sustain when trading resumes. Applied Digital’s investor calendar lists no upcoming events, so the next potential catalyst hinges on news about a Delta Forge tenant or a financing deal. 3
Applied Digital reported fiscal Q2 revenue of $126.6 million earlier this month, with $2.3 billion in cash, cash equivalents, and restricted cash on hand as of Nov. 30, against $2.6 billion in debt. The company said CoreWeave has 400 MW contracted at its Polaris Forge 1 campus, while a U.S.-based investment-grade hyperscaler holds 200 MW at Polaris Forge 2. CFO Saidal Mohmand noted that the company’s liquidity “gives us flexibility to complete construction, bring assets online, and generate cash flow to refinance and pay down debt.” 4
Delta Forge 1 remains in its early days. Data center projects often hit snags with grid connections, long equipment lead times, and slow customer approvals. If capital markets tighten before leases get signed, funding issues can quickly follow.
Next week throws a macro curveball. The Federal Reserve meets Jan. 27-28, with its policy call dropping Wednesday afternoon — a key moment that could send high-growth infrastructure stocks swinging on rate bets. 5
Investors are set to scrutinize Microsoft’s earnings on Wednesday, Jan. 28, looking closely for clues on AI spending and any signs of data center capacity limits. Applied Digital is targeting hyperscale demand, and sentiment could shift sharply based on just a few remarks from Microsoft, one of the largest buyers. 6
Trading picks up Monday with one key question: can Applied Digital convert the Delta Forge setup into a formal lease and financing deal? Eyes then turn to Wednesday, Jan. 28, when the Fed announces its decision and Microsoft reports earnings after the bell.
