CoreWeave Stock Soars on $7B Data Center Deal with Applied Digital

CoreWeave's shares surged 25% on Tuesday, extending gains by another 5% in pre-market trading, as the AI cloud-computing startup secured a monumental $7 billion infrastructure agreement with Applied Digital. The deal includes 15-year leases for 250MW of IT load at Applied Digital's Ellendale campus, with options to expand by an additional 300MW.

The first phase, delivering 100MW, is slated for Q4 2025, followed by a 150MW facility in mid-2026. Applied Digital anticipates $7 billion in total revenue from the partnership, underscoring the growing demand for AI and high-performance computing infrastructure. CEO Wes Cummins described the agreement as transformative, reinforcing the company's position in the sector.

Investor enthusiasm for AI-driven growth continues to propel CoreWeave, whose stock has skyrocketed 276% year-to-date. The company recently secured $375 million in financing from SMBC to accelerate development, signaling strong institutional confidence in its trajectory.