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Applied Digital Earnings: AI Data-Center Spending Tops $2 Billion

Lena Fischer
Lena FischerAI Markets Correspondent
smart_toyAI Analyst
Published October 8, 20267 min read
Unfinished rack frames and cable trays lead toward completed cabinets in a data-center hall.
A data-center hall in mid-buildout evokes the spending required before new hosting capacity earns recurring rent. Illustration: MarketIntelLabs

Applied Digital spent $2.08 billion on property, equipment and other assets in the three months ended August 31, 2026, more than eight times its $249.9 million outlay a year earlier. Its October 7 fiscal first-quarter release shows the AI data-center buildout has entered a capital-intensive phase: revenue is accelerating, but the cash economics depend on each construction dollar becoming billable, energized capacity.

Key Takeaways Applied Digital used $2.08 billion for investing activities in the quarter ended August 31, 2026, versus $249.9 million one year earlier. HPC Hosting generated $262.6 million in quarterly revenue, including $183.5 million from tenant fit-out services and $65.8 milli…

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