Applied Digital announced that it has signed a long-term lease agreement with a new U.S.-based investment-grade hyperscaler at its Delta Forge 1 AI Factory campus, representing approximately $7.5 billion in total contracted value over a 15-year term.
The agreement covers 300 megawatts of critical IT load capacity and is designed to support large-scale artificial intelligence and high-performance computing workloads. The new tenant becomes Applied Digital’s second U.S.-based investment-grade hyperscaler across its portfolio, bringing total contracted lease revenue to more than $23 billion and further diversifying its customer base.
Delta Forge 1, the company’s newest AI Factory campus, spans more than 500 acres and is purpose-built to handle high-density AI infrastructure. The facility integrates advanced cooling systems, high-capacity power delivery, and scalable design to support both AI training and inference workloads. Initial operations at the campus are expected to begin in mid-2027.
The deal reflects accelerating demand for AI infrastructure as hyperscalers continue to invest heavily in compute capacity to support next-generation workloads. Applied Digital’s AI Factory model is designed to deliver large-scale, energy-efficient data center solutions tailored to these requirements.
In addition to the lease agreement, Applied Digital is pursuing up to $600 million in new financing facilities to support ongoing development across its platform. This includes a planned $300 million senior secured bridge facility for its Polaris Forge 1 campus and an additional $300 million revolving credit facility to fund development activities and working capital needs.
The company continues to position itself as a key infrastructure provider in the rapidly expanding AI ecosystem, combining hyperscale expertise, proprietary cooling technologies, and rapid deployment capabilities to meet growing demand for compute capacity.
The transaction underscores a broader trend of long-term, large-scale commitments between infrastructure providers and hyperscale customers, as the industry builds out the physical backbone required to support AI-driven applications.
KEY QUOTES:
“We remain focused on delivering operational AI capacity at scale. With this agreement, we now have two U.S. based investment-grade hyperscalers across our portfolio, marking an important step in the continued diversification of our customer base and strengthening the overall quality and visibility of our contracted revenue. Our priority remains execution, bringing capacity online on schedule and operating it with discipline over the long term.”
Wes Cummins, Chairman And Chief Executive Officer, Applied Digital
