Applied Digital, a rapidly growing player in the high-performance computing space, has accelerated its push into gigawatt-scale data center developments. After launching several hyperscale facilities purpose-built to support advanced workloads, the company is positioning itself to meet soaring infrastructure demands. This surge is propelled by insatiable need for compute power—driven by AI model training, real-time data processing through cloud-based platforms, and enterprise-level digital transformation initiatives.

In an environment where scalability and energy efficiency directly impact bottom lines, Applied Digital's approach stands out. Its facilities not only handle massive compute loads but also integrate power-conscious design with modular expansion capabilities. As industries race toward more intensive data operations, the company’s next wave of gigawatt-scale centers marks a clear response to that momentum.

The Rise of Gigawatt-Scale Data Centers

What Sets Gigawatt-Scale Data Centers Apart

Traditional data centers typically operate in the megawatt range, often between 10 MW and 100 MW. Gigawatt-scale data centers, by contrast, exceed 1,000 MW of total power capacity. This leap in scale doesn’t just reflect higher energy consumption—it marks a fundamental transformation in design, capability, and intent. These massive facilities are engineered for continuous high-density computing, with infrastructure optimized for power-hungry processes like AI model training, real-time analytics, and high-performance computing (HPC).

Several architectural distinctions define the gigawatt model. The physical space spans hundreds of acres. Cooling systems shift from conventional CRAC units to advanced liquid and immersion cooling. Network topologies integrate direct fiber routes to major internet exchanges. And the proximity to energy generation sites becomes a design imperative, not an afterthought.

Applied Digital’s Scaled-Out Strategy

Applied Digital is pioneering the deployment of gigawatt-scale infrastructure in the U.S., integrating power-first planning with deep compute capabilities. In 2023, the company commissioned its first 100 MW facility in Jamestown, North Dakota. That project is only a starting point. Current pipeline plans include multi-phase builds across multiple states, aimed at delivering an aggregate power capacity that exceeds 5 GW over the next five years.

Unlike incumbents who expand incrementally, Applied Digital approaches each site with hyperscale buildout in mind from day one. Power procurement, grid interconnects, land acquisition, and sustainability integration happen in parallel. This concurrent strategy reduces latency in deployment, cuts total cost of ownership for clients, and supports rapid onboarding of compute-intensive clients—particularly AI-focused hyperscalers and Web3-native platforms.

Strategic Power for AI and HPC Workloads

Artificial intelligence workloads don’t scale linearly—they balloon as model sizes increase. OpenAI’s GPT-4 training run, for instance, likely consumed tens of megawatt-hours over weeks. That level of sustained throughput demands not only rack densities of 30 kW and above, but entire campuses designed with regional transmission grid coordination.

Applied Digital is aligning its infrastructure with exactly those computational and electrical realities. Its data centers aren’t just GPU-ready—they’re software-defined environments engineered to achieve low-latency interconnects for terabit-level data exchanges. High-bandwidth network fabrics connect nodes across zones, enabling scaled HPC clusters without relocating data or compute tasks.

Powered by direct access to substation infrastructure and adjacent to renewable energy nodes, Applied’s sites serve as strategic hubs for AI scaling. Clients can deploy entire AI pipelines—from data ingestion to model inferencing—within a single regional facility. This concentration of resources simplifies operations, reduces energy overhead, and accelerates product development timelines.

Why North Dakota is the Launchpad

Strategic Roots in the Midwest

Applied Digital’s decision to anchor its gigawatt-scale data center expansion in North Dakota aligns with a data-first growth strategy rooted in operational efficiency and geographic advantage. The company’s initial Jamestown facility, which spans over 100,000 square feet, laid the groundwork for this model. Since then, North Dakota's mix of low population density, vast land availability, and stable geological conditions has provided optimal conditions for hyperscale development.

Reliable Access to Renewable Energy

North Dakota stands out nationally in renewable resource potential. According to the U.S. Energy Information Administration, as of 2023, wind power accounts for more than 45% of the state's total net electricity generation. This puts North Dakota in the top five states for wind energy contribution. Applied Digital taps into these resources, optimizing power usage effectiveness (PUE) by integrating clean, affordable energy into its operational model. The resulting cost efficiencies and carbon-reduction advantages enable sustainable scaling at the gigawatt level.

Regulatory and Economic Alignment

The state's favorable business climate reduces friction in permitting and infrastructure buildout timelines. North Dakota offers data center tax exemptions for hardware, software, and electrical infrastructure—which significantly reduces total cost of ownership (TCO). Local economic development programs also facilitate public-private collaboration, accelerating deployment schedules. Applied Digital capitalizes on these incentives to compress timelines from groundbreaking to commissioning.

Securing U.S.-Based Infrastructure

Strategic placement within the continental United States supports data sovereignty mandates and compliance with federal regulations like the Federal Risk and Authorization Management Program (FedRAMP) and the Cybersecurity Maturity Model Certification (CMMC). By building on U.S. soil, Applied Digital ensures low-latency access while also mitigating risks tied to international data transfers and foreign surveillance concerns.

• Access to abundant wind and hydroelectric energy provides long-term operational cost advantages.
• Room to scale horizontally and vertically without urban infrastructure constraints.
• Supportive regulatory frameworks reduce administrative barriers and facilitate gigawatt-grade deployments.
• Onshore infrastructure helps meet growing enterprise and government demand for U.S.-based data locality.

With its existing presence anchored in North Dakota, Applied Digital is staging its gigawatt-scale ambitions on firm, scalable ground.

Renewable Power at Scale: Applied Digital’s Sustainable Data Center Strategy

Embedding Renewable Energy in the Data Center Blueprint

Applied Digital has embedded energy strategy at the core of its infrastructure planning. Every new gigawatt-scale facility integrates renewable power from the ground up—factoring site proximity to green energy sources, establishing supply chain alignment with local utilities, and deploying decarbonization tech into operations from day one. This approach hinges on sourcing clean energy at scale, not as an afterthought, but as a foundation-level requirement.

Wind and Solar: Tactical Deployment Around Natural Resources

In North Dakota, where Applied Digital began deploying its massive data infrastructure, average wind speeds reach 18–20 mph at 80 meters above the ground, according to the U.S. Department of Energy’s Wind Exchange data. These conditions make the region one of the top five states in the U.S. for wind energy potential. Leveraging this, Applied Digital has engaged with regional developers to thread wind generation directly into its energy mix.

Solar isn't sidelined either. While the state ranks lower in photovoltaic output, Applied Digital structures deployment models in locations where solar can serve as supplemental power—and in peak times, contribute to grid returns. That means a diversified renewable energy model, tuned to regional strengths.

Power Purchase Agreements That Lock in Clean Energy Supply

To secure long-term renewable access, Applied Digital enters into power purchase agreements (PPAs) with clean electricity producers. These contracts typically span 10 to 20 years and allow the company to lock in pricing and capacity. By doing so, they guarantee consistent delivery of green power to meet high-density compute demands. PPAs also remove volatility in costs and reduce dependency on fossil fuel spikes—a risk strategy layered into their scaling model.

Meeting ESG Commitments While Scaling Infrastructure

Data center energy consumption in the U.S. currently accounts for about 2% of total electricity use according to the U.S. Energy Information Administration, a figure that continues to rise. In this landscape, Applied Digital’s sustainable roadmap positions them in alignment with investor and partner ESG benchmarks.

• Carbon transparency reporting integrated with facility operations
• Energy efficiency design principles including waste heat reuse and modular cooling systems
• Governance frameworks mapped to SEC climate-related disclosure rules

The market is shifting—regulations are tightening, investors are demanding action, and enterprise clients are evaluating vendors based on clean procurement policies. Applied Digital’s decisions reflect this momentum. Every gigawatt-scale deployment isn't just about power. It’s about clean power, efficiently delivered, with traceable impact.

Empowering Cloud and Telecom Giants with Hyperscale Infrastructure

Built for Scale, Engineered for Speed

Applied Digital’s gigawatt-scale infrastructure delivers the power and efficiency required to meet the complex demands of leading cloud providers and telecommunications networks. These facilities are designed not only to scale but also to maintain ultra-low latency and high bandwidth — essential requirements for real-time applications and massive data workloads.

End-to-End Support for Cloud Ecosystems

Through strategic partnerships and long-term capacity agreements, Applied Digital ensures hyperscalers have access to reliable, future-ready infrastructure. These facilities are optimized for:

• High-throughput computing — supporting AI models, analytics platforms, and big data pipelines without bottlenecks.
• Rapid data retrieval — enabling user demand spikes to be handled in milliseconds.
• Scalable storage and compute nodes — balancing workloads across adaptive, modular data floor layouts.

Telecom Transformation Through Hyperscale

Telecommunication companies rely on Applied Digital’s infrastructure to support 5G backhaul, mobile edge computing, and multimedia transmission. As subscriber expectations for speed and immediacy rise, robust backend systems become non-negotiable. Applied Digital’s architecture responds with elastic compute resources and resilient network fabrics capable of absorbing peak traffic with zero disruption.

Precision Automation for Seamless Connectivity

At the heart of Applied Digital’s operational model lies network automation. These technologies orchestrate infrastructure at scale, ensuring seamless integration into public and private cloud environments. Automation routines dynamically reconfigure routing, monitor latency thresholds, enforce security protocols, and adjust resources in real time — all within a unified framework.

What does this mean for clients? Rapid deployment of virtual machines, load-balanced access across multi-region zones, and plug-and-play interoperability with major cloud-native platforms. Every infrastructure touchpoint is synchronized to reduce lag, maximize uptime, and provide transparent management across the service stack.

Edge Computing Meets Hyperscale Expansion

Architecting for Distributed Intelligence

Applied Digital’s infrastructure doesn’t treat edge computing as an afterthought; it’s engineered into the fabric of its gigawatt-scale data centers. Through a modular deployment model, the architecture supports a layered computing approach—high-density central processing combined with strategically deployed edge nodes. This setup enables real-time data processing closer to the end user while retaining the massive compute power of hyperscale hubs for core workloads.

Localization Through Proximity

Data doesn’t always need to trek halfway across the country to reach a hyperscale facility. Applied Digital’s distributed design places compute resources near regional demand centers. These edge-layer deployments reduce latency, support real-time analytics, and optimize bandwidth usage, making them ideal for use cases in retail, finance, manufacturing, and intelligent transportation.

• Latency reduction: Proximity to users cuts round-trip time for data requests.
• Resilience: Distributed architecture isolates failures for enhanced reliability.
• Bandwidth optimization: Regional processing filters high-volume traffic before reaching primary data lakes.

Enabling the Hybrid Cloud Continuum

By integrating edge compute modules with centralized infrastructure, Applied Digital enables hybrid cloud architectures that function seamlessly across locations. Enterprises can deploy latency-sensitive applications at the edge, such as machine vision or IoT analytics, while relying on centralized systems for long-term storage, AI model training, or compliance-heavy workloads. The outcome is more than just operational flexibility—it’s a strategic alignment between compute location and workload specificity.

This dual-tier infrastructure responds to shifting enterprise requirements in real time. As demand patterns evolve, resources can scale dynamically at both the edge and core levels, preserving performance without over-provisioning. That level of adaptability makes Applied Digital’s infrastructure not only scalable but responsive, positioning it at the intersection of edge innovation and hyperscale ambition.

Engineered for Performance: AI and HPC-Ready Data Center Environments

Massive advancements in artificial intelligence and high performance computing (HPC) have reshaped infrastructure requirements. Purpose-built environments must now support unprecedented compute intensity, driven by deep learning models, natural language processing, and sophisticated simulations. Applied Digital has calibrated its gigawatt-scale designs to meet these demands head-on.

Optimized for AI Workloads from the Ground Up

Processing AI workloads isn't a matter of simply adding more servers. It requires architectural refinements across power delivery, data throughput, and thermal control. High-density deployments with specialized accelerators—GPUs from NVIDIA, TPUs from Google, and custom silicon solutions—form the computational backbone of Applied Digital’s AI-ready infrastructure.

• Racks configured to support over 40 kW per rack, accommodating next-gen processors without performance throttling.
• Access to ultra-low latency interconnects for distributed training across multi-node GPU clusters.
• Facility design aligns with AI/ML throughput needs—not just raw compute, but sustained parallelism and data ingress/egress speeds.

Cooling Infrastructure that Supports Maximum Compute Density

The heat footprint of AI and HPC workloads challenges traditional data center cooling strategies. Applied Digital integrates advanced cooling technologies—combining both water and air systems—to maintain thermal consistency even during high-load training cycles.

• Rear-door heat exchangers and precision in-rack liquid cooling enable rack-mounted GPUs to operate at peak efficiency.
• Air flow engineered using CFD (computational fluid dynamics) analysis ensures temperature uniformity across large compute zones.
• Smart system telemetry feeds back into temperature and fan control logic, reducing energy waste and boosting PUE (Power Usage Effectiveness).

High-Throughput Environments for the Industries Driving AI Adoption

Enterprises in sectors like biotech, autonomous systems, quantitative finance, and advanced manufacturing depend on AI and HPC systems for continuous innovation. The model parameters grow; so does the compute budget. Applied Digital’s facilities support massive concurrent jobs, with server farms tuned for inferencing latency as well as high-throughput model training.

ML engineers, data scientists, and research institutions no longer need to compromise between scale and efficiency. With Applied Digital’s infrastructure, distributed training regimes see predictable job performance, while inference applications hit sub-millisecond latency targets.

This configuration doesn't just support AI—it accelerates time-to-value for new discoveries, real-time analytics, and adaptive systems that learn actively from live data streams.

Applied Digital’s Blueprint for Enterprise Digital Transformation

Accelerating Cloud-Native Adoption Across Industries

Applied Digital’s hyperscale infrastructure is reshaping how enterprises transition to cloud-native environments. By deploying gigawatt-scale data centers optimized for containerized applications, microservices, and DevSecOps practices, the company eliminates long-standing barriers to full-scale cloud migration. Enterprises no longer need to choose between speed and control—Applied Digital’s facilities support rapid deployment while aligning with custom governance models.

Seamless Interoperability with Legacy and Hybrid Architectures

Mainframe-dependent industries like finance, insurance, and healthcare often deal with fragmented systems. Instead of replacing legacy systems wholesale, Applied Digital builds pathways for interoperability between on-premise infrastructure, private clouds, and hyperscale environments. This hybrid adaptability allows organizations to maintain critical workloads in place while enabling scalable integration with next-gen tools and platforms.

• Custom network overlays designed to unify disparate environments under a single management layer
• APIs and data adapters engineered for high-throughput communications between cloud-native and legacy systems
• Multi-cloud compatibility via partnerships with leading cloud providers and AI-specialized compute layers

Minimizing Latency for Sector-Specific Requirements

Demand for minimal data latency spans sectors like autonomous logistics, digital health, and real-time trading. Applied Digital addresses this with strategically placed edge-enabled hyperscale infrastructure and proprietary data-handling protocols. These systems lower roundtrip latency to sub-millisecond levels in high-volume environments, sustaining accuracy and reliability under load.

For example, genomic analytics pipelines in biotech firms benefit from low-latency compute-to-storage cycles, allowing real-time insights at scale. In financial sectors, Applied Digital’s colocation within fiber-rich corridors ensures ultra-fast data propagation for algorithmic trading desks and compliance monitoring tools alike.

What does that translate to in practice? Faster execution, cleaner data aggregation streams, and fewer bandwidth bottlenecks—enabling enterprises to capitalize on real-time decision-making without overhauling their existing infrastructure footprint.

Enforcing Data Sovereignty and Streamlining Regulatory Compliance at Scale

Governance Without Borders, Infrastructure Within Them

Applied Digital's expansion into gigawatt-scale data centers comes with a firm commitment: maintain data sovereignty by anchoring infrastructure within U.S. jurisdiction. Every facility is strategically sited and engineered to ensure that data processed and stored remains entirely under national governance. This translates into compliance from the ground up—starting with site selection and extending through network architecture, access controls, and operational protocols.

Jurisdictional Control and Secure Hosting by Design

Across its portfolio, Applied Digital enforces architectural and procedural safeguards that align with federal and state-level data protection statutes. These include:

• Geofenced data residency: Storage nodes and computing environments are physically and logically contained within U.S. territory, preventing routing or backup across borders.
• Controlled access protocols: Role-based authentication, API-level restrictions, and biometric-secured zones ensure that only vetted personnel and approved partners interact with sensitive data systems.
• Integrated audit readiness: Monitoring systems are calibrated for real-time compliance checks. Logs are immutable, time-stamped, and available for audits aligned with FedRAMP, HIPAA, CJIS, and other regulatory frameworks.

Meeting Demands From Regulated Industries and Public Sector Clients

Regulatory frameworks increasingly emphasize where data resides, who controls it, and how it's used. For sectors bound by compliance—finance, healthcare, defense, and public administration—data sovereignty isn't optional. Applied Digital's infrastructure architecture reflects that reality. Gigawatt-scale facilities are built to anticipate and support the most demanding compliance requirements by default, not retrofit:

• End-to-end control: From physical access to software supply chains, operational independence eliminates exposure to foreign jurisdictions.
• Compliant compute environments: Containerized clusters and dedicated physical infrastructure support government-grade segmentation and audit trails.
• Custom regulatory overlays: Applied Digital works directly with clients to map regulatory obligations to architectural implementations, whether it's ITAR, FISMA, or emerging state privacy laws.

How closely should infrastructure layout follow jurisdictional borders? For Applied Digital, the answer remains constant: as closely as the law demands, and the industry’s future expects.

Gigawatt Ambitions: Applied Digital's Expanding Footprint

Scaling Beyond Dakota: New Projects in the Pipeline

Applied Digital is not pausing after breaking ground in North Dakota. Additional gigawatt-scale data centers are moving through conceptual and planning stages, with operational timelines aligned to major infrastructure expansions. Internal reports indicate that multiple sites across Texas, the Midwest, and Southeastern United States are currently under environmental and engineering assessment.

Site selection criteria center on access to resilient energy grids, proximity to fiber routes, and favorable tax and regulatory incentives. In Texas, several parcels near ERCOT interconnects are under evaluation. Meanwhile, the Southeast offers untapped load capacity in states like South Carolina and Georgia—regions already investing heavily in tech-sector workforce development.

Strategic Investment and Public-Private Alliances

The road ahead includes an aggressive capital strategy. Applied Digital plans to leverage a blend of corporate financing, investment consortiums, and public-private partnerships. State and municipal economic development offices have shown increasing interest, offering matching grants, expedited permits, and infrastructure joint ventures to accelerate deployment timelines.

Incentive agreements under consideration include tax abatements tied to job creation and renewable energy integration targets, particularly as Applied Digital positions its future facilities as clean compute zones aligning with ESG benchmarks.

Projecting Future Capacity: A Gigawatt-Driven Roadmap

Today, Applied Digital operates facilities with capacity measured in hundreds of megawatts. Within a 5–10 year horizon, internal projections aim for aggregate power capacity exceeding 3 GW. The roadmap includes:

• Texas: Up to 800 MW in phased deployments across two regional clusters by 2028
• Midwest: A 600 MW data campus spanning three states, targeting AI and HPC compute workloads
• Southeast: 400+ MW in facilities adjacent to primary substations, optimized for hyperscale customers
• Northern expansion: An additional 500 MW in the northern plains, complementing existing North Dakota operations

Energy partnerships will align with transmission buildouts from regional utilities and community solar initiatives, ensuring scalability without grid strain. These developments signal a nationwide push, transforming Applied Digital from a leading player in North Dakota into a gigawatt-standard bearer across America.

Shaping the Infrastructure of Tomorrow’s Data Economy

Applied Digital’s momentum in building gigawatt-scale data centers aligns directly with the accelerating demands of AI, cloud computing, edge services, and high-performance workloads. This roadmap meets the trajectory of industries that are scaling globally, and it matches the pace of evolving enterprise IT strategies.

Each facility integrates renewable energy sources, modular design, and HPC-ready frameworks, indicating a focused commitment to efficient operations and sustainable growth. These aren’t incremental upgrades—they’re strategic moves that reinforce Applied Digital’s role as a core enabler of the digital economy’s physical backbone.

Innovation doesn’t happen in isolation. Through ecosystem partnerships with cloud providers, telecommunications carriers, and enterprise technology platforms, Applied Digital supports an operational model that prioritizes interoperability, processing power, and high-availability environments. The result: smarter infrastructure built for scale and speed.

Organizations re-architecting their digital services should engage with Applied Digital. Whether the goal is to reduce latency at the edge, secure regulatory-compliant compute capacity, or access scalable AI-ready environments, the infrastructure is built—it just needs the workloads to match.