Applied Digital reported a sharp jump in revenue as demand for AI data centers keeps growing. But its losses also widened as it spends big on expansion.

For the fiscal first quarter ended August 31, revenue soared 322% to $341.9 million. That beat the LSEG estimate of $133.8 million by a wide margin.

The Dallas-based data center operator posted a net loss of $221 million, or 76 cents a share. That is much bigger than the $18.5 million loss a year ago.

The company is building large “AI factory campuses” for cloud and tech clients. CEO Wes Cummins said demand remains strong.

Applied Digital ended the quarter with $3.7 billion in cash. But it also carries $6.4 billion in debt from its building spree.

Shares have been volatile as investors weigh fast growth against heavy spending. The company is betting that AI demand will keep rising.

The results show how the AI boom is reshaping the data center business. Firms are racing to add capacity.