Applied Digital vs IREN: High-Growth Data Center Infrastructure Providers Face Off

Applied Digital and IREN are two high-growth data center infrastructure providers that have been rapidly scaling their operations in recent years. Both companies are evolving from legacy cryptocurrency mining roots into powerhouse providers of high-performance computing and data center services.

Applied Digital's flagship Polaris Forge 1 site is fully contracted to CoreWeave, adding a layer of risk due to customer concentration. The company reported revenue growth of nearly 184% in FY 2026, reaching $611.3 million, but also a net loss of close to $244 million.

IREN, on the other hand, has secured five-year contracts with Microsoft and Nvidia worth nearly $9.7 billion and $3.4 billion respectively. The company reported revenue growth of 41% in FY 2026, reaching $707 million, but also a net loss of close to $703 million.

The author favors IREN due to its contracted revenue base and blue-chip customer relationships, but notes that both companies are losing money and spending heavily to build out infrastructure. Applied Digital's current ratio is 4.0x, while IREN's is approximately 3.6x, indicating sufficient short-term assets to cover immediate obligations.