Applied Digital designs, builds, and operates large-scale data centers for high-performance computing workloads, primarily AI training and inference. The company provides liquid-cooled infrastructure and high power density to hyperscalers and compute providers through long-term, non-cancellable, take-or-pay leases. These agreements involve 15-year terms where customers pay for contracted capacity regardless of utilization. Applied Digital derives revenue from base rent, power pass-through fees, and one-time tenant fit-out services. The company concentrates its campuses in the Dakotas to leverage low-cost electricity and natural cooling, though it is expanding into southern U.S. markets. Applied Digital operates through two segments: high-performance computing hosting and a legacy blockchain hosting business. Management is scaling the computing segment as the core growth engine while the blockchain segment declines in relative importance. The strategy focuses on securing grid-connected power sites before demand arises and using a standardized construction platform to accelerate delivery. To fund construction, Applied Digital uses project-level debt and preferred equity, with plans to refinance into lower-cost debt once facilities are operational. The company also holds a minority stake in Base Electron to develop supplemental power generation for its campuses.