Applied Digital Stock Jumps 10% on $7.5B AI Hyperscaler Lease

Applied Digital (NASDAQ: APLD) has entered into a lease agreement with a U.S.-based investment-grade hyperscaler for 300 megawatts (MW) of critical IT load. The agreement, which carries an estimated 15-year term, represents approximately $7.5 billion in total contracted value. The capacity is located at the company's Delta Forge 1 campus, a 430 MW facility designed for artificial intelligence and high-performance computing workloads.

The Delta Forge 1 campus spans more than 500 acres and is engineered to support high-density power delivery and cooling for both AI training and inference tasks. This agreement marks the company's second U.S.-based investment-grade hyperscaler across its three AI Factory campuses. With this addition, Applied Digital's total contracted lease revenue has increased to more than $23 billion.

The company reports that more than 50% of its total contracted revenue is now backed by investment-grade customers. This lease further diversifies the company's customer base, which now includes three hyperscale tenants. Initial operations at the Delta Forge 1 campus are scheduled to begin in mid-2027.

In addition to the lease agreement, Applied Digital is arranging up to $600 million in new credit facilities. This includes a $300 million senior secured bridge facility intended to fund the continued development of the 150 MW Building 3 data center at its Polaris Forge 1 campus. The bridge facility is expected to be provided by a syndicate of bank lenders.