Shares of CoreWeave, Inc. (CRWV) are soaring 5.08% in pre-market trading on Monday, following the announcement of a significant long-term lease agreement with Applied Digital (APLD). The deal, valued at approximately $7 billion over a 15-year period, marks a major milestone for the specialized cloud services provider backed by Nvidia.
Under the terms of the agreement, Applied Digital will provide CoreWeave with 250 megawatts of data center capacity to host its artificial intelligence and high-performance computing infrastructure. The first phase, a 100 MW data center, is expected to be operational by the fourth quarter of this year, while a second 150 MW facility is slated for mid-2026. Additionally, CoreWeave has secured an option for a third 150 MW building, potentially ready by 2027.
This strategic move positions CoreWeave as a formidable player in the rapidly growing AI cloud services market. As a "neocloud" provider, CoreWeave specializes in renting Nvidia's highly sought-after chips to software developers, capitalizing on the surging demand for AI-centric cloud infrastructure. The long-term nature of the lease agreement not only secures CoreWeave's growth trajectory but also demonstrates the company's confidence in the sustained expansion of AI and high-performance computing sectors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.