What changed in this filing

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Item 1. Business

2026-07-29 compared with 2025-07-30 · 141 added, 77 removed, 69 unchanged (76% of the section changed)

We are a United States ("U.S.") designer, developer, and operator of next-generation data center infrastructure across North America.

We provide data center infrastructure solutions to the rapidly growing industries of high-performance computing ("HPC") and artificial intelligence ("AI").

We operate in two distinct business segments, blockchain data center hosting (the "Data Center Hosting Business") and HPC data center hosting (the "HPC Hosting Business"), as further discussed below.

During the fiscal year 2025, we determined that the Cloud Services Business met the criteria to be classified as “held for sale” on our consolidated balance sheets as the Board of Directors approved plans for the sale of the segment.

The potential sale of the Cloud Services Business, which was previously included as a reportable segment, represents a strategic shift in our operations and financial results and as such, we have excluded the results of this business from both continuing operations and segment results and presented them in discontinued operations on the consolidated statements of operations for all periods presented.

Data Center Hosting Business

Our Data Center Hosting Business provides energized infrastructure services to crypto mining customers.

Our custom-designed data centers allow customers to rent space based on their power requirements.

We currently serve one crypto mining customer with a remaining contractual term of two and a half years.

This business segment accounts for all of the revenue we generated from our continuing operations for the fiscal year ended May 31, 2025.

We currently operate sites in Jamestown and Ellendale, North Dakota, with a total hosting capacity of approximately 286 MW as follows:

• Jamestown, North Dakota:

106 MW facility.

• Ellendale, North Dakota:

180 MW facility.

We are a U.S.-based designer, developer, owner, and operator of large-scale, purpose-built data centers engineered to support high-performance computing (“HPC”) workloads, including artificial intelligence (“AI”), machine learning, and other accelerated-compute applications.

We design, build, and operate high-performance, sustainably engineered data centers—which we refer to as AI factories—and deliver that capacity to investment-grade hyperscalers and other leading compute customers under long-term lease and hosting arrangements.

Our standardized, repeatable design model spans site selection, design, construction, and operations, and has been qualified by major hyperscalers, enabling rapid, flexible deployment in both air-cooled and liquid-cooled configurations.

Over the past several fiscal years, we have evolved from a company focused on blockchain hosting into a purpose-built HPC data center platform organized around our proprietary AI factory model.

Today, our growth, capital allocation, and operating focus are centered on developing and operating HPC data centers, while our legacy blockchain hosting operations represent a smaller, single-customer component of our business that we expect to continue to decline in relative significance over time.

We conduct our business through two reportable segments:

our HPC data center hosting business (the “HPC Hosting Business”) and our blockchain data center hosting business (the “Data Center Hosting Business”).

As discussed further under Note 1 - Business and Basis of Presentation and Note 19 - Business Segments, our cloud services business is no longer an operating or reportable segment following the May 2026 transaction.

Our Competitive Strengths

We believe the following strengths position us to capture growing demand for HPC and AI infrastructure:

Control of power-advantaged sites

We originate and control large, contiguous sites with access to substantial, cost-competitive power and the interconnection rights necessary to energize high-density compute at scale.

We believe that securing power and interconnection ahead of demand is the principal constraint on new HPC capacity and a core differentiator for us from many of our competitors.

Purpose-built, high-density design

Our campuses are engineered for liquid-cooled, high-density graphics processing unit (GPU) deployments, with redundant electrical and mechanical systems designed to meet the uptime and performance requirements of mission-critical AI workloads.

Long-term contracted revenue with high-quality counterparties

Our HPC capacity is contracted under long-term leases, including with investment-grade hyperscalers, providing long-dated revenue visibility.

Standardized, repeatable AI factory platform

We develop our campuses using a standardized, franchise-style design that is engineered to deliver state-of-the-art data centers of approximately 150 MW in approximately 14 to 18 months, with low water usage.

A scalable operating model which standardizes operations and leverages the same core roles across campuses and our master service and master telecom service agreements with leading hyperscalers—agreements that are difficult to obtain—position us to move quickly as hyperscaler AI infrastructure investment accelerates.

HPC Hosting Business

Our HPC Hosting Business specializes in designing, constructing, and operating data centers tailored to support high power density applications like HPC and AI.

We are currently building a HPC focused campus comprised of three data centers, which are the first AI focused facilities in our Polaris Forge portfolio, in Ellendale, North Dakota.

We are under construction on the first two buildings:

a 100 MW and a 150 MW data center, respectively.

These facilities are purpose built for high power density GPUs and along with a third 150 MW data center, will comprise our Polaris Forge 1 campus.

On May 28, 2025, the Company entered into two lease agreements for the first two buildings, totaling 250 MWs.

We anticipate that this business segment will begin generating meaningful revenues once the first building within Polaris Forge 1 becomes operational, which is expected in calendar year 2025.

Discontinued Operations

Cloud Services Business

The Cloud Services Business, which is operated through our wholly owned subsidiary, Applied Digital Cloud Corporation ("Applied Digital Cloud"), has locations in three states:

Our HPC Hosting Business designs, constructs, owns, and operates next-generation data centers purpose-built to host high-density GPU and other accelerated-compute infrastructure for AI, machine learning, and other HPC applications.

Polaris Forge 1

Our flagship HPC campus, located in Ellendale, North Dakota, is being developed in phases.

Our first HPC data center at the campus, with approximately 100 MW of critical IT load, became operational in October 2025.

A second data center, expected to provide an additional 150 MW, is partially operational, and a third data center, also expected to provide approximately 150 MW, is under construction with an anticipated ready-for-service date in calendar year 2027.

On May 28, 2025, our subsidiaries APLD ELN-02 LLC and APLD ELN-03 LLC each entered into a data center lease (the "ELN-02 Lease" and the "ELN-03 Lease”) with CoreWeave, Inc.

(“CoreWeave”) to deliver an aggregate of 250 MW of capacity to host CoreWeave’s HPC operations at Polaris Forge 1.

On August 28, 2025, our subsidiary APLD ELN-02 C LLC entered into a third lease (the “Building 4 Lease”) with CoreWeave for an additional 150 MW, bringing the total contracted capacity at Polaris Forge 1 under our CoreWeave leases to 400 MW.

We have guaranteed the obligations of the applicable subsidiaries under each of these leases.

On March 30, 2026, as a result of an internal restructuring at CoreWeave, the ELN-02 Lease was amended and the ELN-03 Lease was assigned, in each case, to a wholly owned subsidiary of CoreWeave, CoreWeave Compute Acquisition Co.

VIII, LLC, as further described in " Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Business Overview."

Polaris Forge 2

On August 18, 2025, we broke ground on our Polaris Forge 2 data center campus near Harwood, North Dakota, with an initial 200 MW data center.

We currently anticipate reaching initial capacity in the second half of calendar year 2026 and full capacity in early calendar year 2027.

On October 22, 2025, we entered into an approximately 15-year lease with a U.S.-based investment-grade hyperscaler for 200 MW of critical IT load at the campus.

Delta Forge 1

On January 22, 2026, we broke ground on Delta Forge 1, a 300 MW critical IT load campus located in a strategic southern U.S.

On April 23, 2026, we entered into two approximately 15-year leases with a second U.S.-based investment-grade hyperscaler for an aggregate 300 MW of critical IT load at the campus.

Polaris Forge 3

Polaris Forge 3 is a 300 MW critical IT load data center campus located in our northern United States region, currently under construction across two buildings.

The aggregate 300 MW of critical IT load is contracted under two approximately 15-year leases (with three five-year renewal options) with a high investment-grade hyperscaler, representing approximately $7.5 billion of contracted revenue over the base term, with expected delivery beginning in the second half of calendar year 2027 through the second half of calendar year 2028.

Delta Forge 2

Delta Forge 2 is a 210 MW critical IT load campus located in our southern region, comprising a single building under construction.

The full 210 MW of critical IT load is contracted under an approximately 15-year lease (with three five-year renewal options) with a high investment-grade hyperscaler, representing approximately $5.2 billion of contracted revenue over the base term, with expected delivery in the first half of calendar year 2028.

Contracted Lease Portfolio

As of May 31, 2026, we had executed long-term leases representing approximately 1,410 MW of contracted critical IT load across five campuses, representing approximately $36.2 billion of total contracted revenue over the initial 15-year base lease terms.

Each lease is a direct, long-term agreement with CoreWeave or an investment-grade hyperscaler, is structured

on a take-or-pay basis, and is non-cancellable, such that a termination for convenience would require payment of the full remaining contractual value.

The following table summarizes our contracted HPC lease portfolio as of May 31, 2026:

Campus Anchor Tenant Contracted Critical IT Load Lease Term Total Contracted Revenue (1)

Expected Delivery (2)

Polaris Forge 1 CoreWeave 400 MW 15 years ~$11.0B 2H25–1H27

Polaris Forge 2 Investment-grade hyperscaler 200 MW 15 years ~$5.0B 2H26–1H27

Polaris Forge 3 High investment-grade hyperscaler 300 MW 15 years ~$7.5B 2H27–2H28

Delta Forge 1 High investment-grade hyperscaler 300 MW 15 years ~$7.5B 1H27–1H28

Delta Forge 2 High investment-grade hyperscaler 210 MW 15 years ~$5.2B 1H28

Total / Portfolio 1,410 MW ~$36.2B 2H25–2H28

(1) Total contracted revenue reflects the initial 15-year base term of each lease and excludes renewal options.

Each lease includes multiple five-year renewal options (three five-year options, except Polaris Forge 2, which includes two five-year options), which are not reflected in the amounts shown.

(2) Expected delivery reflects management’s current estimates of the periods during which contracted capacity is expected to be placed in service and is subject to construction, permitting, interconnection, and other risks.

Expected delivery is presented as calendar year periods.

Site and Power Pipeline

In addition to our contracted lease portfolio, we are developing and originating additional capacity that we expect to support future HPC leasing.

We categorize this pipeline as follows:

Secured and under construction

As of May 31, 2026, we had approximately 1.5 GW of critical IT load that is contracted and operating or under construction across our five named campuses—Polaris Forge 1, Polaris Forge 2, and Polaris Forge 3 in our northern region and Delta Forge 1 and Delta Forge 2 in our southern region—of which approximately 100 MW was operating and revenue-generating.

Each megawatt in this category is backed by land under our control and/or an executed utility power agreement.

Active pipeline

We are advancing an active development pipeline of over 3 GW of utility (gross) power, consisting of near-term greenfield sites in multiple states together with expansion capacity at our existing campuses, certain of which are scalable to 1 GW or more.

Extended pipeline

We are additionally evaluating an extended pipeline of more than 5 GW of utility (gross) power that is in earlier stages of discussion or due diligence.

In addition, through our partnership with Base Electron Corporation ("Base Electron"), an independent power producer, we are pursuing the development of approximately 1.2 GW of front-of-the-meter, natural gas-fired generation in the Dakotas, which we expect to unlock additional power capacity for our development pipeline.

Data Center Hosting Business

Our Data Center Hosting Business provides energized infrastructure allowing the customer to deploy equipment based on its power requirements.

This is a legacy line of business:

we currently serve a single crypto mining customer under a contract with a remaining term of approximately one and a half years, and we expect this segment to represent a declining share of our business as we scale our HPC operations.

We operate hosting sites in Jamestown, North Dakota (a 106 MW facility) and Ellendale, North Dakota (a 180 MW facility), representing total hosting capacity of approximately 286 MW.

On May 5, 2026, we completed the separation of our cloud business in a series of transactions that resulted in the Company owning approximately 97% of the issued and outstanding equity of ChronoScale Corporation.

On July 1, 2026

ChronoScale Corporation completed a holding company transaction, as a result of which the holding company became the public parent, ChronoScale Holdings Corporation ( “ ChronoScale ” ).

ChronoScale owns and operates our historic cloud business and is consolidated into our financial statements.

The common stock of ChronoScale began trading on the Nasdaq Capital Market under the symbol “CHRN” on May 5, 2026.

ChronoScale's cloud business currently operates in three states:

Colorado, Minnesota and Utah.

This business provides cloud

services to customers, such as AI and machine learning developers by renting space at third party co-location centers and providing the customers with access to its cloud computing equipment.

As a company designing, constructing, and operating data centers, we face significant competition from various data center providers in the U.S.

We compete with several prominent data center providers in the US, including Digital Realty, Equinix, Inc., NTT, and various private operators.

These competitors own or operate properties similar to our data centers.

Specifically, within our Data Center Hosting Business, we compete against Bitdeer Technologies Group and Riot Platforms, amongst other private operators.

As we navigate this competitive landscape, we strive to innovate and differentiate our services to attract and retain customers.

Many of our competitors offer more locations in more markets worldwide and have well-established international operations.

Many of our competitors may have significant advantages over us, including greater name recognition, longer operating histories, higher operating margins, pre-existing relationships with current or potential customers, the capacity to provide the same or additional products and services at a lower cost, more significant marketing budgets and other financial and operational resources, more robust internal controls and systems, and better established, more extensive scale and lower cost suppliers and supplier relationships.

This business provides cloud services to customers, such as AI and machine learning developers by renting space at third party co-location centers and providing the customers with access to its cloud computing equipment.

ChronoScale's legacy Ekso Bionics, Inc.

(“Legacy Ekso”) business designs, develops, and markets exoskeleton and complementary products that augment human strength, endurance, and mobility.

On June 4, 2026, ChronoScale announced that its Board of Directors committed to a plan to divest the Legacy Ekso business and to focus its operations solely on its cloud business.

As such, the Legacy Ekso business was designated as “held for sale.”

We operate in a competitive market for the development and operation of data centers serving HPC and AI workloads.

Competition centers on securing and developing sites with access to large-scale, reliable, and cost-competitive power and interconnection;

designing and delivering facilities capable of supporting high-density compute;

attracting and retaining customers;

and accessing capital on attractive terms.

We compete with established data center owners and operators, including Digital Realty Trust, Inc.

and Equinix, Inc., as well as hyperscalers that develop their own capacity, independent and private data center developers, and other power-advantaged developers, including companies that have expanded from blockchain hosting into HPC infrastructure, such as IREN Limited, Cipher Digital Inc., TeraWulf Inc., Hut 8 Corp., Riot Platforms, Inc., CleanSpark, Inc., HIVE Digital Technologies Ltd., Core Scientific, Inc., Bitdeer Technologies Group, Galaxy Digital Inc., Fermi Inc., Keel Infrastructure Corp, and MARA Holdings, Inc.

Within our legacy Data Center Hosting Business, we compete with other blockchain hosting providers.

Industry Trends

The build-out of AI infrastructure is accelerating rapidly.

Hyperscaler capital expenditures on AI infrastructure are estimated to exceed $700 billion annually by 2026, and U.S.

data center construction spending has tripled since 2022 and is on track to surpass general office construction.

Industry sources project that global demand for data center capacity could triple by 2030, while the U.S.

Department of Energy projects that the grid will require approximately 100 GW of new capacity by 2030—roughly half of it driven by data centers—and the Boston Consulting Group estimates a U.S.

data center power shortfall that could exceed 45 GW by 2030.

At the same time, rising rack power densities driven by successive generations of AI accelerators are pushing critical IT loads beyond the levels most legacy facilities can support, increasing demand for the purpose-built, high-density, liquid-cooled capacity we develop.

We believe the data center industry is poised for significant growth, driven by the rapid adoption of digital technologies across all sectors.

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Companies are investing in renewable energy sources, such as solar and wind power, and implementing advanced cooling and power management technologies to reduce their environmental impact and operating costs.

The AI market has experienced significant growth and development in recent years, with the rapid advancement of machine learning, natural language processing, and computer vision.

The global AI market is expected to reach $500 billion by 2027, driven by increasing adoption across various industries, including healthcare, finance, transportation, and manufacturing.

However, the AI landscape is also facing challenges and uncertainties.

Developing more advanced AI systems, such as large language models and generative AI, has raised concerns about potential misuse, bias, and the displacement of human workers.

Companies operating in AI are under increasing pressure to address these issues and ensure responsible development and deployment of their technologies.

The AI market has experienced significant growth in recent years, driven by the rapid advancement of machine learning, generative AI, and other accelerated-compute applications across a broad range of industries.

Training and serving advanced AI models requires substantially greater power density than traditional computing, which is changing the power and cooling requirements of modern data centers and driving demand for purpose-built, high-density, liquid-cooled facilities.

We believe substantial growth in the data center industry will be driven by AI which requires high power density, changing the power and cooling requirements of the data center design.

The explosive growth of generative AI combined with the demand for a different type of data center infrastructure has led us to pursue a core specialization in AI focused data centers.

The explosive growth of generative AI combined with the

demand for a different type of data center infrastructure has led us to pursue a core specialization in AI focused data centers.

We believe that providers offering comprehensive power, space and connectivity solutions globally while prioritizing sustainability and energy efficiency will be best positioned to capitalize on the increasing demand for data center services.

Materials and Suppliers

Developing Polaris Forge 1 demands significant electrical infrastructure components and construction raw materials, including some that may be impacted by tariffs.

While we proactively procure these materials from our suppliers in sufficient quantities to facilitate hardware deployment at scale and on accelerated construction timelines, we cannot yet predict the effect of the recently imposed U.S.

tariffs on imports, or the extent to which other countries will impose quotas, duties, tariffs, taxes or other similar restrictions upon the import or export of construction materials and specialized electricity distribution equipment in the future, as discussed under "Risk Factors" below.

To mitigate potential supply chain disruptions and any impact of tariffs and to ensure the smooth operation of our facilities, we have established long-term contracts and agreements with key suppliers.

These arrangements give us greater certainty regarding the availability and

pricing of essential components and materials.

Furthermore, we continuously monitor market trends and maintain open lines of communication with our suppliers to anticipate and address potential supply chain challenges.

The development and operation of our data centers require significant electrical infrastructure, specialized power and cooling equipment, and construction materials, certain of which may be subject to long lead times, price volatility, or the effects of tariffs and trade measures.

We proactively procure these materials and equipment in sufficient quantities, and sufficiently in advance, to support hardware deployment at scale and on accelerated construction timelines, and we have established long-term contracts with key suppliers that give us greater certainty regarding the availability and pricing of essential components.

We continuously monitor market conditions and maintain open communication with our suppliers to anticipate and address potential supply chain challenges.

Our standardized AI factory design further strengthens our supply chain position.

Because power distribution, cooling architecture, and data hall layouts are standardized across our campuses, we are able to consolidate purchasing around a common set of trusted, qualified partners—including ABB for electrical equipment, BASX for mechanical and cooling systems, and Caterpillar for backup generation—and to place bulk orders against a multi-gigawatt development pipeline.

Combined with prefabricated skids, modular construction, and early procurement of long-lead equipment, this approach supports repeatable build cycles of approximately 12 to 18 months per 100 to 150 MW facility and reduces delivery and schedule risk as we scale.

By proactively managing our supplier relationships, securing necessary materials in advance and closely monitoring market conditions, we aim to minimize the impact of supply chain fluctuations on our operations.

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Global supply logistics have caused delays across all distribution channels, impacting the markets we serve.

Delivery schedules for specialized equipment, such as power and cooling systems for HPC data centers, including AI focused data centers, have been affected due to constraints on globalized supply chains and have and may be further impacted by tariffs.

These constraints extend to procuring construction materials and specialized electricity distribution equipment required to develop HPC and AI facilities.

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To help address global supply logistics and pricing concerns, we have implemented proactive measures such as procuring and holding required materials.

We continuously monitor developments in the global supply chain which is necessary to assess their potential impact on the Company’s expansion plans within the HPC market.

The regulatory landscape surrounding HPC and blockchain hosting services is evolving rapidly, and we anticipate increased scrutiny and potential regulation in the near and long term.

We continuously monitor developments in the global supply chain which is necessary to assess their potential impact on the Company’s expansion plans within the HPC data center market.

The regulatory landscape surrounding HPC and data center hosting services is evolving rapidly, and we anticipate increased scrutiny and potential regulation in the near and long term.

Any such developments may significantly impact our business and operations in ways that are difficult to predict.

In the realm of cloud computing, there are growing concerns about the ethical implications and potential misuse of these technologies, particularly in association with AI and machine learning.

Governments and regulatory bodies are considering measures to ensure the responsible development and deployment of AI systems, including transparency, accountability, and fairness guidelines.

The amount of energy used for crypto mining and colocation services has also received significant attention.

In January 2024, the U.S.

Energy Information Administration conducted an emergency survey of electricity consumption data from cryptocurrency mining companies in the U.S.

There are growing concerns about the ethical implications and potential misuse of these technologies, particularly in association with AI and machine learning.

Governments and regulatory bodies alike are considering measures to ensure the responsible development and deployment of AI systems, including transparency, accountability, and fairness guidelines.

The amount of energy used for our services has also received significant attention.

Energy Information Administration has recently launched surveys relating to electricity consumption from both data centers and cryptocurrency

mining in the U.S.

states have also conducted similar studies.

This indicates that more focus is being placed on the energy usage of these activities.

It is unclear how the information collected will be used for future regulations, but it is expected that energy efficiency and sustainability will be critical factors regulating this industry.

Furthermore, using digital assets, including Bitcoin, in illicit financial activities has been a significant concern for regulators and lawmakers.

Leaders in the U.S.

House Financial Services Committee and U.S.

Senate Banking Committee have expressed interest in passing legislation to provide additional regulatory authority to address these risks.

Treasury Department has also requested additional authorities to combat using digital assets in illegal activities.

It is unclear how the information collected will be used for future regulations, but it is expected that energy efficiency and sustainability will be critical factors regulating our industries.

While there is currently insufficient support for any particular proposal, we expect that regulatory efforts in this area will continue to evolve and potentially impact our business.

We also closely follow developments related to regulating digital asset markets and financial services.

In January 2024, the SEC approved a series of spot Bitcoin exchange-traded funds ("ETFs"), marking a significant milestone in the mainstream adoption of digital assets.

Later in 2024 the SEC also approved multiple spot Ethereum ETFs.

However, the regulatory landscape for digital asset markets remains complex and uncertain, with various agencies and lawmakers proposing different approaches to oversight and regulation.

As a company operating at the intersection of data center and HPC hosting services, we are committed to maintaining a proactive and adaptive approach to regulatory compliance.

We closely monitor legislative and regulatory developments and engage in dialogue with relevant stakeholders to ensure our business practices align with the evolving legal and regulatory

We closely monitor legislative and regulatory developments and engage in dialogue with relevant stakeholders to ensure our business practices align with the evolving legal and regulatory framework.

Despite the uncertainties posed by the changing regulatory landscape, we remain committed to delivering innovative and responsible solutions in the data center and HPC hosting markets while prioritizing compliance and risk management.

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Employees and Human Capital Resources

During the fiscal year 2025, we invested significantly in our workforce to retain and attract top-tier employees.

During fiscal year 2026 , we invested significantly in our workforce to retain and attract top-tier employees.

We expanded our employee base and promoted individuals internally to critical positions.

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Our human capital strategy aligns employee interests with our long-term success drivers.

We implemented a long-term incentive program, granting eligible employees service-based restricted stock awards that vest over three years and performance-based restricted stock awards that vest upon achieving specific performance milestones.

During fiscal year 2026, we granted eligible employees service-based restricted stock unit awards that vest over three years and performance-based restricted stock unit awards that vest upon achieving specific performance milestones.

This program is a key employee incentive, aligning their long-term interests with the Company’s objectives.

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Compensation and Benefits

Our compensation schemes are structured to incentivize the recruitment, retention, and motivation of personnel to pursue our long-term objectives.

Our compensation programs are structured to incentivize the recruitment, retention, and motivation of personnel to pursue our long-term objectives.

We conduct rigorous evaluations, benchmarking salary and wages against quantitative metrics, and adjust monetary compensations to ensure competitive alignment with employee roles, skill levels, tenure, and geographic considerations.

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Continued expansion of businesses

We continue our expansion into hosting for AI workloads.

We continue our expansion into HPC hosting for AI workloads.

As such, we have plans to expand our HPC hosting capacity through build outs at existing and future locations.

The locations have been strategically selected for their power, fiber and land capabilities along with a specialized design for high density compute.

The locations have been and will continue to be strategically selected for their power, fiber and land capabilities along with a specialized design for high density compute.

Secure scalable power sites

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In addition, we are currently focused on and will continue to target states that have favorable laws and regulations for AI workloads and HPC application industries, which we believe further minimizes the risks associated with the scaling of our operations.

Vertically integrate power assets

Integrate power assets

We are increasingly looking at various types of power assets to support the growth of our hosting operations.

This also includes power generation assets, which longer-term could be used to reduce our cost of power.

Our management team has experience not only in evaluating and acquiring power assets, but also in the conversion of power assets to crypto mining/hosting operations and the construction of data centers.

Our management team has experience not only in evaluating and acquiring power assets, but also in the conversion of power assets to the construction of data centers.

Site Selection Criteria

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Further, because data centers like ours represent a unique power load, we believe our demand for renewable energy and entry into agreements with renewable energy providers will increase and accelerate the buildout of renewable energy infrastructures.

Our data center campuses are engineered to support high-density, mission-critical compute while emphasizing efficient power utilization, advanced cooling architectures, and resilient electrical design.

These facilities are designed to operate with a range of long-duration power resources, including grid-supplied electricity and, where appropriate, on-site generation.

Our liquid cooling system utilizes a closed-loop design that reduces water waste by recycling water rather than consuming it, addressing a common concern among communities about water usage.

As a result, our data centers are designed to operate at a near-zero water usage effectiveness (WUE).

Our environmental focus is centered on disciplined development, efficient operations, and long-term infrastructure stewardship rather than reliance on any single energy source or environmental attribute.

We have material customer concentration in our Data Center Hosting Business.

We currently serve one crypto mining customer with a remaining contract term of two and a half years.

We currently serve one crypto mining customer with a remaining contract term of one and a half years.

We also have material customer concentration in our HPC Hosting Business.

We currently have one customer in this business segment, which is a party to two fifteen-year term leases with us.

We currently have three customers in this business segment, each of which is party to approximately fifteen-year leases with us.

Corporate Information

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Our principal website address is www.applieddigital.com .

We make available free of charge through the Investor Relations link on our website access to press releases and investor presentations, as well as all materials that we file electronically with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) as soon as reasonably practicable after electronically filing such materials with, or furnishing them to, the SEC.

including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) as soon as reasonably practicable after electronically filing such materials with, or furnishing them to, the SEC.

In addition, the SEC maintains an internet website, www.sec.gov, that contains reports, proxy and information statements and other information that we file electronically with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business