Robust Demand Met by Execution

Meeting Customers where they are

In an interview for upcoming work, Wes Cummins, CEO of Applied Digital, discusses the company's Louisiana data center, roughly 100 to 150 miles away from Meta's Hyperion site. We discuss how Applied Digital compares with neoclouds like CoreWeave and Nebius, who are actually his customers. Companies like his act as the "demand overflow valve" for hyperscalers and neoclouds, which also build some of their own data centers.

While power is a driver of site selection, compute equipment is the biggest cost; the economics center on getting the most out of the hardware. Utilization is an important cost lever. Chip efficiency will improves over time, which we have been observing.

Community acceptance is part of execution, and decides where the company can build at all.