A：The key milestones include Polaris Forge 1 reaching ready for service, completing the first three of three contracted buildings on schedule, with the remainder expected to be completed by the end of 2027. This will host 400 MW for core weav, representing approximately $11 billion in prospective lease revenue over 15 years. Additionally, a 500,000,015-year lease for 200 MW of Polaris Forge 2 was announced, a $3 billion project near Harwood, North Dakota, with initial capacity expected in 2026 and full build out in 2027.

A：The significance of the recent hyperscale leases is that they signify the increasing demand for AI infrastructure and the competitive strategy of hyperscalers to secure sites capable of supporting massive AI demand. These leases also reflect the strategic regional choices made by hyperscalers to build in areas with abundant power capacity and potential for future largescale developments, which align with Apply Digital's sites being more efficient and cost-effective.

A：Apply Digital has significantly evolved its construction and design capabilities by adopting modular and highly efficient data center designs. This approach allows for rapid construction timelines, leverages common components, and enables flexibility to support different AI and cloud workloads. Data centers are designed to run multiple AI workloads and traditional cloud workloads, providing hyperscalers with maximum flexibility over the life of the asset.

A：The company has generated lease revenues after two years of construction and over $1 billion invested in the first 100 MW data center. The expectation is for lease revenues to ramp up in the next quarter, with two campuses under construction simultaneously representing 600 MW. These buildings are expected to come online over the course of 2026 and 2027, projecting meaningful revenue growth over the next 18 to 24 months. Financial agreements are in place with top-tier financial institutions for executing the repeatable and capital-efficient framework, including drawing down a $100 million development loan facility and accessing a $5 billion preferred equity facility to support ongoing and future development projects.

A：Apply Digital employs a multi-layered financing strategy that leverages third-party capital for the majority of upfront investments while retaining majority ownership of each site. This strategy includes a development loan facility for pre-release construction funding, an executed lease with an investment-grade hyperscaler to access preferred equity, and a private offering of senior secured notes to finance portions of data center development. The goal is to refinance project-level debt at lower rates once operational, and the team is actively exploring options to further reduce the cost of debt for ongoing projects.

A：The Applied Digital Data Center hosting segment experienced a revenue increase, contributing $41.6 million, up 15% compared to the prior year.

A：Approximately $69.5 million of the increase in the cost of revenue was associated with tenant fit out services for the HPC hosting business, while the remaining increase was related to the data center hosting business and other revenue-generating expenses.

A：At the end of the fiscal second quarter, the company ended with $2.3 billion in cash, cash equivalents, and restricted cash versus $2.6 billion in debt, with total equity of $2.1 billion. After the quarter-end, the company completed financings for $382.5 million in proceeds.

A：The company is executing in a market defined by hyperscaler investment, with an expectation to surpass its long-term goal of $1 billion in NOI within five years. It aims to maintain a strong balance sheet and liquidity position for investments in equipment and new sites.

A：The company led and invested $15 million in a $25 million funding round for Corus, supporting advanced liquid cooling solutions for high-density AI workloads.

A：The company launched Applied Digital Cares, a community initiative funding grants to support education, innovation, and local development in the regions where they operate.

A：The strategic reasoning behind the spinout is to separate the cloud platform from the data center business, allowing each to scale independently with greater strategic and capital flexibility. This transition is expected to enhance the company's ability to serve the accelerating AI market and increase long-term shareholder value.

A：The agreement with Babcock and Wilcox is for a limited notice to proceed with their unique D'W solution, which allows for earlier market entry for power plants utilizing natural gas compared to competing technologies.

A：The initial reaction from utilities has been overwhelmingly positive and there is a strong interest in the solution provided by the company, which has a proven track record and can offer power generation in the near term.

A：More information about the new product can be expected in the first quarter as the company proceeds with the site and an actual schedule for building the equipment.

A：The speaker suggests that preleasing indicates the company's confidence in progressing on sites without signed leases, implying that preleasing is an important part of the strategy to expand current and future campuses.

A：Pricing has been stable to slightly better over the past six months with an extraordinarily robust demand profile. The company has also experienced more favorable terms in other aspects of the contracts, such as cancellation, transferability, and overall stability over the 15-year time frame.

A：The company has achieved significant progress with the Macquarie equipment facility by drawing down again to purchase land and other equipment, and it plans to start construction on at least one new campus by the end of January, backed by a high degree of confidence in signing a lease with a new customer.

A：The projected timeline for closing the merger with the chronoscale spin-out is in the first half of 2026, with a more specific expectation of possibly early March or by April or May.

A：The growth prospects for the spin-out business include potential additional leasing of capacity as a standalone business and some growth in capacity as well. The company has entered into various discussions for significant contracts that could allow for the deployment of data center capacity, which is a large opportunity for value creation for shareholders.

A：There are advanced discussions on three sites with a total capacity of 900 MW.

A：The company's pipeline remains robust. The current focus is less on the demand side and more on how much the company can construct from a supply chain and personnel perspective on an annualized basis. The emphasis is on ensuring timely and budgetary delivery to customers without having reached the limit of potential capacity yet.

A：Being qualified by investment grade hyperscalers means the company can leverage the process of getting to a master agreement, which typically takes between three months to over a year. As the company has already been through this process with most of the targeted hyperscalers, it is in a good position to expedite future projects that involve new or expanded campuses, leading to significantly shortened time frames compared to starting from scratch.

A：No, not all 900 MW of the projects are expected to be completed at the same time. The projects could be executed one at a time, or none at all. The speaker emphasizes that nothing is 'done and dusted,' and these figures represent ongoing work rather than completed projects.

A：A lot was learned from the execution of the first building, leading to refinements in design and construction, and streamlining the supply chain process. The company standardized with fewer SKUs and suppliers, which has given them a good handle on construction timelines. They are also forward-thinking in securing supply chain resources, having locked in capacity for MEP (mechanical, electrical, and plumbing) work. The team is confident in their processes and the maturation of their construction and development group, and is proud of delivering the project on time and budget.

A：The fourth generation design has helped streamline the process, simplify operations, and position the company as one of those delivering projects on time.

A：The company keeps finding more opportunities to acquire stranded power and continues evaluating third-party opportunities, with several potential acquisitions being considered weekly.

A：Each of the company's campuses has the potential to go beyond a gigawatt, with two existing campuses expected to reach 1 GW each. The company is also working on three additional campuses, each with the potential to scale to 2 GW capacity. With the addition of these campuses and their expansion potential, the company views a clear path to reaching 5 GW capacity by 2030-2032.

A：Corinthus' competitive solution lies in its cold plate technology, which is likened to semiconductor technology. This technology includes a specially designed patterned cold plate that is matched to each chip, with a lot of semiconductors built into modules. This design allows the technology to efficiently manage the cooling of chips as their power density increases, future-proofing data centers by enabling the same amount of liquid to chill chips that are 3x the power density of current chips.