Applied Digital’s Ellendale data center unit faces power outage, shares slump

By Thomson Reuters Feb 9, 2024 | 4:05 PM

(Reuters) – Applied Digital said on Friday revenue from its Ellendale data center hosting facility would take a hit in the current quarter by an ongoing power outage, sending its shares down more than 10% in extended trading.

The facility began experiencing a power outage on Jan. 18, 2024, resulting in a complete outage by Jan. 19, the data center services provider said in a Securities and Exchange Commission filing.

“This complete power outage is currently ongoing as our electricity provider is performing upgrades to ensure stability of our electrical supply,” the company said.

Revenue from this facility would be “materially impacted by this outage” for the quarter ending Feb. 29, the Dallas, Texas-based company said, adding it expects the facility to be online again during this month.

Last month, Applied Digital had lowered its full-year expectations, blaming a tight supply of sought-after networking components made by chipmaker Nvidia.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)