Applied Digital CEO Wes Cummins on CoreWeave AI lease agreement

Key Concepts:

• Purpose-built Nvidia infrastructure
• GPU-focused data center
• Megawatts (MW) of critical IT load
• Hyperscalers
• Power cost profile
• PUE (Power Usage Effectiveness)
• Renewable energy

Data Center Expansion in North Dakota

The speaker discusses the culmination of two years of work in building a purpose-built facility in Ellendale, North Dakota, specifically designed for Nvidia infrastructure and GPUs. The signing of the lease for the first two buildings is highlighted as a significant event, but emphasized as just the beginning of the campus's overall capacity development in the Dakotas region.

Revenue Generation Timeline

The first building, with a capacity of 100 megawatts (MW) of critical IT load, is projected to begin generating revenue in Q4 of the current year. The second building is expected to contribute revenue by the end of Q2 of the following calendar year.

Demand Beyond Coreweave

The speaker confirms substantial interest from hyperscalers, in addition to Coreweave, for these large-scale campuses. The company primarily targets hyperscalers for these types of facilities. The low power cost profile, efficient PUE (Power Usage Effectiveness), cold weather, and abundance of renewable energy in North Dakota are key factors driving this interest.

Factors Attracting Hyperscalers

• Low Power Cost Profile: The region offers a cost-effective power supply, making it attractive for energy-intensive data center operations.
• PUE (Power Usage Effectiveness): The facilities are designed for high efficiency, as reflected in their PUE, which measures the ratio of total facility power to IT equipment power. A lower PUE indicates greater efficiency.
• Cold Weather: The cold climate aids in cooling the data center equipment, reducing the need for energy-intensive cooling systems.
• Renewable Energy Abundance: North Dakota has a significant supply of renewable energy sources, aligning with the sustainability goals of many hyperscalers.

Conclusion

The data center campus in North Dakota is strategically positioned to capitalize on the growing demand for GPU-powered computing infrastructure, particularly from Coreweave and other hyperscalers. The region's favorable power costs, climate, and renewable energy resources make it an attractive location for large-scale data center deployments. The initial revenue generation is expected to begin in Q4 of the current year, with further expansion planned for the following year.