A：The company has scaled to develop multiple campuses in parallel, with 700 MW currently under construction.

A：The strategic review of the cloud services business is ongoing, with financial results classified as held for sale. The company will hold off on providing further updates until a definitive disposition plan is shared with shareholders.

A：The company secured an initial $112.5 million draw from a $5 billion preferred equity facility with Macquarie Asset Management to advance construction of Polaris Forge 1. Additionally, they secured funding from Macquarie Equipment Capital for Polaris Forge 2 and intend to use the preferred equity facility for continued equity funding.

A：The company remains focused on securing capital at the lowest cost, building repeatable financing structures, and positioning the company to scale data center development across the United States.

A：The tenant fit out for the 100 MW building is expected to generate significant revenue from lease income as the facility comes fully online towards the end of the calendar year.

A：Revenues for the first fiscal quarter of 2026 were $64.2 million, an 84% increase from $34.8 million in the first quarter of 2025. The increase was primarily due to $26.3 million of revenue from tenant fit-out services for the HPC hosting business and a $5 million increase related to the data center business. Cost of revenue and other expenses directly attributable to generating revenue were $29.2 million, a 29% increase compared to the prior year.

A：The company's net loss was $27.8 million, or 11 cents per share, with an adjusted net loss of $7.6 million, or 3 cents per share. Adjusted EBITDA was negative $500,000 compared to $6.3 million in the prior year.

A：The company ended the first fiscal quarter with $114.1 million in cash and cash equivalents, $687.3 million in debt, and $362.5 million in proceeds from financings that occurred post-quarter end. They plan to continue expanding their power position to the market and are actively evaluating new sites across additional states and regions to meet the accelerating demand.

A：The speaker's motivation for partnering with towns like Ellendale and Harwood is to invest in regions that have potential and to be part of their long-term success, as opposed to the typical aggressive tax incentives and competition for large-scale construction projects.

A：To minimize the environmental impact, the company is employing the latest design innovations, such as reducing water usage and preserving local resources, investing in infrastructure upgrades, and enhancing grid support and optimizing power distribution to strengthen, not strain, the surrounding communities.

A：The company's vision for Applied Digital is to be known as a job creator, tax contributor, and trusted community partner, with the belief that growth should be done correctly.

A：The company highlights several achievements and capabilities including the approval of their design by four hyperscalers, secured critical supply chain, scaled construction to 700 MW, and established capital partnerships for rapid expansion. They are positioned at the convergence of unprecedented demand and proven execution capability.

A：The company is in the process of finalizing project financing for multiple buildings, which is one of the largest core warehouse as a tenant backed financings in the market. They are working through the credit agreement documentation and aim to have a facility in place that is competitive or more optimal than what has been announced by competitors.

A：For Polaris Forge, 280 MW of initial utility power has been announced. Some infrastructure will be built to meet the timeline for the location, which is expected to come online in 2026 and be fully operational by 2027.

A：The company has started negotiations with new hyperscalers and potential customers for expansion at new and existing locations. The timeline for these negotiations can vary from 90 to 120 days. The company expects these negotiations to be a constant activity moving forward due to the acceleration in their business.

A：The limiting factor for expanding Player's Forge 1 and 2 to 1 GW is the infrastructure that transmits power. Some locations may require additional generation capability to be added to the grid, which is not necessarily at the location but overall, as indicated by the different power scaling approaches at different sites.

A：The goal is to match the power ramp with the ability to build. This involves building 300 MW at Player Forge 2 and having the next building ready when power becomes available to be delivered.

A：The $5 billion MAAM financing helps the company by providing a mechanism to scale much larger, minimizing dilution for a set amount at the subsidiary for Macquarie. It unlocks an additional 20 to 25 billion of total capital, which helps in building significant capacity without constantly needing to raise capital from the market.

A：The expected terms for the project financing indicate a likely range of around 70% loan-to-cost (LTC) with a cost ranging from 400 to 450 basis points over LIBOR. The financing structure involves a bifurcation where 50% is structured as a mortgage with lower pricing and the excess cash flow sweeping down the principal, while the remaining 20% is structured as a second lien or mezzanine facility.

A：The active pipeline is defined as projects that the company believes could move into the construction phase within the next 6 to 12 months. These projects are currently being worked on with regard to permitting and power, and are expected to be ready to transition into construction shortly.

A：The company has been focusing on building its capacity and has a plan in place for scaling with three completed buildings and a fourth under construction. However, one of the challenges mentioned is the supply chain, which could become an increasingly bigger issue as the company aims to scale to multiple campuses simultaneously. Internally, the company has been cultivating a large power pipeline and has been working on scaling to multiple campuses, which has almost all been put in place. Nevertheless, challenges in human capital and managing multiple sites efficiently while adhering to an aggressive 12-month time frame may present headwinds.

A：The updates indicate that the company has established a supply chain with key partners, reduced the number of SKUs used on-site, and is currently implementing projects in the Dakotas. There is a potential to extend this to one or more additional campuses in the region, leveraging localized labor forces and other local labor pools for execution. The company also plans to explore opportunities in other states to diversify its location and customer base.

A：The company employs a stringent selection process to identify sites that are geographically diverse and suitable for building for the right customers using their existing supply chain and resources. This approach has led to a 'flood' of power opportunities, with the company evaluating over 50 different sites in the last four weeks. The implication for power requirements is that hyperscalers are increasingly seeking sites that can provide substantial power, with a focus on being able to scale to at least 200 MW and potentially up to a gigawatt.

A：The implication is that hyperscalers are looking for sites that can offer a significant amount of power, such as a full gigawatt or more. The focus is on how quickly a site can provide at least 200 MW and the potential to scale to a gigawatt. The company is discussing sites that can accommodate this level of power and scale, and these discussions are not just with Harwood but with other potential customers as well.

A：The company anticipates a similar economic spread between its cost of capital and the revenue from the data centers, regardless of whether the tenant is an investment-grade hyperscaler or not. The key focus is on the spread, which is the difference between the company's cost of capital and the revenue generated from the data centers. Lower economics are expected for investment-grade hyperscalers due to their lower cost of capital, but the company aims to achieve a consistent return from an economic perspective.

A：The outlook on the supply chain indicates that lead times have become extended across the industry, although the company has managed to secure manufacturing capacity for future needs to avoid significant pricing inflation or stretching of orders. There has been industry-wide pricing inflation and stretching of lead times, but the company's position is that these issues have been managed through proactive ordering and capacity reservations.

A：The company expects project financing for the three buildings, designated as Project Quay, to be fully funded by project finance and Macquarie financing without requiring any additional funding from the company.

A：Power will be available in South Dakota in 2026, pending the passage of a sales tax exemption. However, construction timelines are subject to potential delays due to new market entrants and lessons not being learned from past construction projects. There's an expectation that proven vendors and developers will gain more market share as a result of these delays.

A：In the long term, the demand for data centers is expected to remain strong, with availability of power continuing to play a significant role. However, there may be some delays in project timelines due to new market entrants and learning curves associated with building data centers. As these entrants gain experience, they are likely to contribute to more successful and timely project outcomes.