Applied Digital (APLD): what its 10-K says it depends on

Customers

CoreWeave, Inc.

earns from · 400 MWnamed as a risk

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.Business (Item 1)

Also named by CORZ, GLXY

HPC Hosting Business largest customer

earns from · 59% of our total revenue from continuing operationsnamed as a risk

During fiscal year 2026, this business segment was comprised of one customer accounting for 59% of our total revenue from continuing operations.Risk factors (Item 1A)

Crypto mining hosting customer

earns from · 25% of our revenue from continuing operationsnamed as a risk

During fiscal year 2026, this business segment was comprised of one customer accounting for 25% of our revenue from continuing operations.Risk factors (Item 1A)

Investment-grade hyperscaler (Polaris Forge 3)

earns from · approximately $7.5 billion of contracted revenue

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.Business (Item 1)

Investment-grade hyperscaler (Delta Forge 2)

earns from · approximately $5.2 billion of contracted revenue

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.Business (Item 1)

Suppliers

Third-party utility power suppliers

depends onnamed as a risk

We rely on third parties to provide power to our data centers, and we cannot ensure that these third parties will deliver such power in adequate quantities or on a consistent basis.Risk factors (Item 1A)

Caterpillar

depends on

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.Business (Item 1)

Also named by FIX, GNRC, MOD, RBC, TRMB

ABB

depends on

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.Business (Item 1)

Also named by ENS, FIX, POWL, VPG

BASX

depends on

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.Business (Item 1)

Partners and platforms

Base Electron Corporation

depends on · approximately 1.2 GW

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.Business (Item 1)

Telecommunications carriers' fiber networks

depends onnamed as a risk

Although our customers generally are responsible for providing their own network connectivity, we still depend upon the presence of telecommunications carriers’ fiber networks serving our data centers in order to attract and retain customers.Risk factors (Item 1A)

Other companies

ChronoScale Holdings Corporation

approximately 96%named as a risk

We recently completed the separation of our cloud business segment into a separate publicly traded company, ChronoScale, of which we currently own approximately 96%.Risk factors (Item 1A)

Competitors

Equinix, Inc.

competes with

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.Business (Item 1)

Also named by DLR, OKLO

Digital Realty Trust, Inc.

competes with

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.Business (Item 1)

Places

North Dakota

concentrated in · the majority of our revenuenamed as a risk

The revenue we collected from operating these data centers was responsible for the majority of our revenue in the fiscal years ended May 31, 2026, 2025, and 2024.Risk factors (Item 1A)

Also named by CHRD, MDU

Ellendale, North Dakota

operates in · approximately 100 MW

Our first HPC data center at the campus, with approximately 100 MW of critical IT load, became operational in October 2025.Business (Item 1)

Harwood, North Dakota

operates in · 200 MW

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.Business (Item 1)

Jamestown, North Dakota

operates in · 106 MW

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.Business (Item 1)

Taiwan

depends onnamed as a risk

For example, the ongoing geopolitical and economic uncertainty between the U.S. and China, the unknown impact of current and future U.S. and Chinese trade regulations, and geopolitical risks with respect to Taiwan, which serves as a central hub for the technology industry supply chain, could, directly or indirectly, materially harm our business, financial condition and results of operations.Risk factors (Item 1A)

Also named by AAOI, AAPL, AB, ADI, AEHR, ALAB, AMAT, AMD and 50 more

Commodities and inputs

Renewable energy credits

exposed to its price · 4 to 5 yearsnamed as a risk

In the event that the market price for energy decreases, we may be required to pay more under the power purchase agreements than we would otherwise if we were to purchase renewable energy credits on the open market, which could adversely affect our results of operations.Risk factors (Item 1A)

Also named by HASI

Steel

exposed to its pricenamed as a risk

In addition, as we are building new, or expanding existing, data centers, we are subject to commodity price risk for building materials related to the construction of these data centers, such as steel and copper.Market risk (Item 7A)

Also named by AAON, AGX, ALSN, AM, AME, AMRC, AOS, APD and 104 more

Copper

exposed to its pricenamed as a risk

In addition, as we are building new, or expanding existing, data centers, we are subject to commodity price risk for building materials related to the construction of these data centers, such as steel and copper.Market risk (Item 7A)

Also named by AAON, AGX, AMKR, APG, APH, BMI, BWA, CARR and 58 more

Electricity

exposed to its pricenamed as a risk

The fluctuating price of electricity required for our operations and to power our planned expansion may inhibit our profitability.Risk factors (Item 1A)

Also named by AA, AESI, APD, ATI, ATO, BA, BMNR, CLF and 22 more

Generators

depends onnamed as a risk

In addition, the lead-time to procure certain pieces of equipment, such as generators, is substantial.Market risk (Item 7A)

Laws and programs

Series G Preferred Stock PEPA

up to $2 billionnamed as a risk

Under the PEPA, we may issue up to $2 billion (the “Commitment Amount”) shares of our Series G Convertible Preferred Stock, par value $0.001 (the “Series G Preferred Stock”), at our option during the period commencing on April 30, 2025 and terminating on the earliest of (i) August 27, 2029, (ii) the date on which the Investors shall have made payment of the aggregate purchase price for put issuances pursuant to the PEPA equal to the Commitment Amount, or (iii) such date as there ceases to be a sufficient number of authorized but unissued shares of common stock remaining under the Exchange Cap (as defined in the PEPA).Risk factors (Item 1A)

CERCLA

subject tonamed as a risk

We could be held jointly and severally liable under CERCLA and various state, local and national laws for the investigation and remediation of environmental contamination on our properties caused by previous owners or operators.Risk factors (Item 1A)

Also named by AA, AAOI, ALB, AN, APD, ATI, AWK, BMY and 27 more

U.S. import tariffs

subject tonamed as a risk

Any such current and future tariff increases, expanding the tariffs to capture other countries and types of foreign goods or other changes in U.S. trade policy may make it more difficult or costly for us to procure construction materials and specialized electricity distribution equipment required to develop our HPC and AI facilities.Risk factors (Item 1A)

Also named by AOS, BJ, BMI, CAVA, CVLG, CVS, DKS, DTE and 18 more

Revolving Credit Agreement (First National Bank of Omaha)

subject tonamed as a risk

A breach of the covenants could result in an event of default under our Revolving Credit Agreement or the indentures governing our notes.Risk factors (Item 1A)

Also named by AMD, VLTO, WCN

Air quality permits for diesel generators

subject tonamed as a risk

Certain permits from state or local environmental regulatory agencies, including regulators of air quality, are usually required to install and operate diesel-powered generators, which provide emergency back-up power at most of our facilities.Risk factors (Item 1A)