Applied Digital announced a 15‑year lease agreement valued at approximately $7.5 billion with an unnamed U.S. based high‑investment‑grade hyperscaler for its 430‑megawatt Delta Forge 1 AI factory campus. The lease covers 300 megawatts of critical IT load and is part of the company’s repeatable AI Factory model designed for rapid deployment and operational efficiency.
The tenant is the company’s second U.S. based investment‑grade hyperscaler and the third hyperscale tenant across its three AI Factory campuses. With this agreement, more than 50% of Applied Digital’s total contracted lease revenue is now backed by investment‑grade customers, strengthening the quality and stability of its revenue stream.
The new contract lifts the company’s total contracted lease revenue to over $23 billion, providing long‑term revenue visibility and reinforcing the company’s position as a leading provider of purpose‑built AI infrastructure. The deal also validates the scalability of the AI Factory model, which has attracted multiple high‑profile hyperscalers.
Operations at Delta Forge 1 are expected to begin in mid‑2027. To support construction and delivery, Applied Digital plans to secure up to $300 million in a senior secured bridge facility and up to $300 million in a senior secured revolving credit facility, underscoring the capital intensity of large‑scale AI data center projects.
Wes Cummins, Chairman and CEO, emphasized that the company’s priority remains execution: “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.”
Investors welcomed the announcement, and analysts upgraded their outlooks, citing the deal’s impact on revenue visibility, tenant diversification, and the continued demand for purpose‑built AI facilities.
The lease represents a significant boost to Applied Digital’s financial stability and underscores the growing demand for specialized AI infrastructure. While the company’s financing plans highlight the capital intensity of its projects, the strong tenant mix and long‑term revenue visibility position it well to navigate execution risks and capitalize on the expanding AI market.
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