Applied Digital Secures New Hyperscaler Tenant for 430 MW AI Factory Campus
New 15-year deal covers 300 MW for AI and HPC workloads.
Applied Digital (NASDAQ: APLD) announced a new 15-year, $7.5 billion lease agreement with a U.S.-based investment-grade hyperscaler tenant at its Delta Forge 1 AI Factory campus. This lease covers 300 megawatts (MW) of critical IT load, purpose-built for artificial intelligence (AI) and high-performance computing (HPC) workloads. With this addition, Applied Digital now has two U.S. investment-grade hyperscalers across its three AI Factory campuses, expanding total contracted lease revenue to over $23 billion. Over 50% of that revenue is now backed by investment-grade customers, diversifying the company's base with a third hyperscale tenant.
Delta Forge 1 spans over 500 acres and is designed from the ground up for large-scale AI workloads, featuring high-density power delivery and advanced cooling architecture. Initial operations are expected to begin in mid-2027. Separately, Applied Digital plans to secure up to $300 million in senior secured bridge financing for its 150 MW Building 3 at Polaris Forge 1, plus a $300 million revolving credit facility for pre- and post-lease development. CEO Wes Cummins emphasized execution and operational discipline as priorities.
- Applied Digital signed a $7.5B, 15-year lease with a new U.S. investment-grade hyperscaler for 300 MW at Delta Forge 1.
- Total contracted revenue now exceeds $23 billion across three hyperscale tenants, with over 50% from investment-grade customers.
- Initial operations at Delta Forge 1 expected mid-2027; company also pursuing up to $600M in credit facilities for development.
Why It Matters
Massive hyperscaler demand for dedicated AI infrastructure signals sustained enterprise investment in specialized data centers.