New York, Jan 27, 2026, 11:11 a.m. EST — Regular session
- Applied Digital shares climbed roughly 12% by late morning, recovering after a volatile start to the session.
- Renewed risk appetite in the theme was sparked by a new Nvidia investment linked to AI data-center expansions.
- Investors are eager to see Applied Digital secure additional long-term leases and reveal details about the Delta Forge site.
Applied Digital’s shares jumped 11.7% to $40.40 by late morning on Tuesday, swinging between $36.51 and a high of $40.47 earlier in the session.
The gains came after CoreWeave and Nvidia announced on Jan. 26 that they were deepening their partnership. Nvidia is investing $2 billion in CoreWeave at $87.20 per share to fast-track AI data-center expansions. 1
The reason it matters now is straightforward: investors remain unsure if the AI expansion signals a sustained cycle or just a crowded trade facing power and funding constraints. For smaller players like Applied Digital, sentiment can pivot sharply on news of a single contract.
Dallas-based Applied Digital announced on Jan. 22 that it has begun construction on “Delta Forge 1,” a 430-megawatt AI “factory” campus located in a southern U.S. state. The company expects to kick off initial operations by mid-2027. 2
The company stated Delta Forge 1 is built to handle up to 300 MW of “critical IT load” — the power actually delivered to servers after cooling and other overheads. CEO Wes Cummins emphasized that “AI Factories succeed or fail” based on how well power, cooling, and operations mesh. The firm also revealed talks are underway with another potential investment-grade hyperscale client. 3
Power lies at the core of the story. On Tuesday, U.S. utility NextEra Energy highlighted soaring electricity demand driven by data centers and AI. The U.S. Energy Information Administration projects power consumption to reach record levels in 2026 as AI and cryptocurrency data centers grow, Reuters reported. 4
Applied Digital aims to reassure investors it can secure funding during its expansion. In the Jan. 7 quarterly update, the company posted $126.6 million in revenue and reported ending the quarter with roughly $2.3 billion in cash and restricted cash. Cummins described the company as “well positioned” to start building new sites, while CFO Saidal Mohmand highlighted a “strong liquidity position.” 5
The upside still hinges on execution: converting “discussions” into signed leases, staying on track with construction, and controlling power and equipment costs. Any hiccup in financing markets can quickly hit stocks linked to major building projects.
Applied Digital’s next move is clear-cut: reveal a tenant for Delta Forge 1 and give more specifics on its location. Cummins told The Register the company plans to announce the site in February. 6
