Applied Digital (APLD) Investor presentation summary

Strategic direction and growth

• Transitioned from blockchain-focused data centers to high-performance computing (HPC) and AI infrastructure, launching cloud services and expanding AI data center capacity to over 1 GW under construction, with 900 MW fully contracted on long-term leases.

• Secured major long-term leases with hyperscalers, representing approximately $23 billion in anticipated aggregate rental revenue across three campuses.

• Sold non-core assets and raised significant capital, including $160 million from institutional investors and NVIDIA, and issued $450 million in convertible notes at 2.75% interest.

• Entered a partnership with Macquarie Asset Management, enabling up to $5 billion in funding for future data center development, potentially unlocking $25 billion in total project value.

• Plans to spin out the cloud business as a separate company in 2026.

Data center portfolio and operations

• Operates and develops large-scale AI data centers: Polaris Forge 1 (400 MW), Polaris Forge 2 (200 MW), and Delta Forge 1 (300 MW), all under long-term leases with major hyperscalers.

• Blockchain operations continue with 286 MW capacity, focusing on infrastructure and services for mining clients, not direct mining.

• North Dakota sites benefit from abundant, low-cost energy, favorable climate, and economic incentives, with over 200 days of free cooling annually.

• Extensive power and site pipeline includes over 1 GW operating/under construction and up to 5 GW in early-stage development.

• Robust fiber connectivity and strategic inland locations provide structural advantages for hyperscale clients.

Financial and operational highlights

• Expected site NOI margins range from 85% to 88% for AI campuses, with anticipated CapEx per MW between $11M and $13M.

• Convertible notes offering included capped call and share repurchase to minimize shareholder dilution, with a 32.5% conversion premium and 100% capped call overlay.

• Macquarie transactions structured with preferred equity and common equity interests, leveraging high loan-to-cost ratios to maximize project funding.

• Data center construction spending has tripled since 2022, with AI infrastructure demand outpacing traditional office construction.

• U.S. data center power shortages projected to exceed 45 GW by 2030, driving hyperscalers to seek new inland locations.