Shares of CoreWeave, Inc. (CRWV) are soaring 5.08% in pre-market trading on Monday, following the announcement of a significant long-term lease agreement with Applied Digital (APLD). The deal, valued at approximately $7 billion over a 15-year period, marks a major milestone for the specialized cloud services provider backed by Nvidia.

Under the terms of the agreement, Applied Digital will provide CoreWeave with 250 megawatts of data center capacity to host its artificial intelligence and high-performance computing infrastructure. The first phase, a 100 MW data center, is expected to be operational by the fourth quarter of this year, while a second 150 MW facility is slated for mid-2026. Additionally, CoreWeave has secured an option for a third 150 MW building, potentially ready by 2027.

This strategic move positions CoreWeave as a formidable player in the rapidly growing AI cloud services market. As a "neocloud" provider, CoreWeave specializes in renting Nvidia's highly sought-after chips to software developers, capitalizing on the surging demand for AI-centric cloud infrastructure. The long-term nature of the lease agreement not only secures CoreWeave's growth trajectory but also demonstrates the company's confidence in the sustained expansion of AI and high-performance computing sectors.