New York, Jan 22, 2026, 3:03 PM EST — Regular session
- Applied Digital announced it has started construction on Delta Forge 1, a 430-megawatt AI data center campus located in the southern United States.
- Shares dipped 0.6% in afternoon trading, after wavering between gains and losses earlier.
- Investors await a signed lease from a hyperscale client and clear details on how the project will be financed.
Shares of Applied Digital dipped Thursday following the announcement that the data center operator has started construction on a new “AI factory” campus. Investors appeared cautious, balancing the potential from customer deals against the heavy expenses and challenges of expanding power-intensive facilities. 1
This announcement is crucial as markets have rapidly adjusted valuations for firms linked to artificial intelligence expansions—yet they’ve been equally swift to penalize setbacks, funding shortfalls, or developments launching empty. For Applied Digital, growth now hinges less on the sheer megawatt figures and more on turning that capacity into signed contracts.
Applied Digital said Delta Forge 1 will initially back 430 megawatts of utility power — providing up to 300 megawatts of “critical IT load,” the capacity that actually powers servers — with plans to expand starting in 2028. The company expects to kick off operations by mid-2027.
“AI Factories succeed or fail based on how effectively power, cooling and operations are integrated,” Chairman and Chief Executive Wes Cummins said in the release, describing Delta Forge 1 as the next phase of the company’s expansion.
The company said it is moving forward with the project as talks continue with another potential investment-grade hyperscale client — a label for the largest cloud and internet giants that lease massive amounts of computing power.
Delta Forge 1 will kick off with two 150-megawatt facilities spread over 500-plus acres, the company announced. When fully up and running, the campus is projected to employ over 200 full-time workers.
Based in Dallas, Applied Digital has promoted its “AI factory” concept as a scalable model for multiple locations, designed to meet intense computing demands and accelerated construction schedules.
The company has stated it builds data centers and colocation space for AI and high-performance computing clients, with long-term leases linked to CoreWeave’s AI infrastructure at its North Dakota campus. 2
The stock saw a choppy session. Applied Digital hit a high of $36.25 and dropped to a low of $33.88, eventually settling near $34.86, down 0.6% by the close.
The risk here is simple: new builds might burn cash faster than they bring it in. If a lease drags on longer than expected or financing costs more than planned, it could mean a slower rollout, a larger equity raise, or both.
Investors are now focused on whether Applied Digital can secure a binding lease with a hyperscale client for Delta Forge 1. They’re also watching how the company intends to fund construction as it pushes toward its mid-2027 goal for starting operations.
