Applied Digital Corporation (APLD) stock is trading higher in Thursday's premarket session after the company reported a more than 300% increase in first-quarter revenue.

The growth was driven primarily by its high-performance computing (HPC) hosting business, which generated $262.6 million in revenue during the quarter.

Applied Digital Beats First-Quarter Estimates

Applied Digital reported first-quarter adjusted revenue of $300.39 million, beating analyst estimates of $132.16 million.

The digital infrastructure provider posted an adjusted loss of 1 cent per share, narrower than analysts' expectations for a loss of 30 cents per share.

During Wednesday's earnings call, Applied Digital CEO Wes Cummins said AI data center demand remains near maximum levels, with customers still seeking capacity for 2027.

He noted that nearly all capacity for 2027 should already be under contract, while demand is increasingly shifting toward 2028 and 2029.

Cummins added that the company expects to secure new leases and campus expansions at materially higher rates than those signed in the first half of 2026.

North Dakota Anchors Data Center Expansion

North Dakota remains Applied Digital's largest operating region, supported by low-cost power, abundant energy resources and a favorable climate.

The company operates 286 megawatts (MW) of Bitcoin mining hosting capacity across two sites in the state. It expects to have 300 MW of critical IT capacity online in North Dakota by the end of 2026.

Meanwhile, Applied Digital is developing campuses in Louisiana and Alabama, with revenue expected from those regions in the first half of 2027.

The company has also secured up to 1 gigawatt (GW) of potential power capacity in Finland, marking its first expansion outside the United States.

$36 Billion in Contracted Revenue Supports Growth

Applied Digital entered fiscal 2027 with approximately $36 billion in contracted revenue across five campuses, three states and two geographic regions.

The company expects to bring more than 600 MW online over the next 12 months, compared with 250 MW during the previous 12-month period.

It is targeting take-or-pay contracts lasting at least 15 years with investment-grade AI hyperscalers.

Additionally, Applied Digital expects to secure approximately 250 MW of expansion leases by the end of 2026 at significantly higher prices than previous agreements.

Power Investments Support Long-Term Targets

Applied Digital signed a long-term power purchase agreement with Base Electron, in which it holds an approximately 10% stake.

The agreement covers a planned 1,200 MW natural gas facility in central North Dakota, with electricity deliveries expected to begin in 2030.

At Polaris Forge 1, the first two buildings have reached ready-for-service status, providing 250 MW of critical IT capacity across 10 data halls. The third building remains on schedule.

The completed capacity at Ellendale represents a 150% increase in the site's capacity.

Looking ahead, management expects Applied Digital's operating portfolio to reach approximately 3.5 GW to 4 GW by the end of 2030, assuming demand and project execution remain on track.

APLD Price Action: Applied Digital shares were up 4.03% at $24.77 during premarket trading on Thursday, according to market data.