Applied Digital on Monday disclosed a 15-year lease at its Delta Forge 2 site with a U.S.-based hyperscaler that is expected to generate roughly $5.2 billion in revenue over the life of the agreement. The announcement sent the company’s shares up 8.7% in extended trading.
The arrangement covers 210 megawatts of computing capacity at Delta Forge 2, the company’s new AI Factory campus, and is structured as a take-or-pay lease. Applied Digital said this marks the third long-term lease it has signed with the same investment-grade hyperscaler, although it did not identify the customer.
Applied Digital noted that about 70% of its contracted revenue is now backed by U.S.-based investment-grade hyperscalers. The firm also highlighted the potential revenue uplift should tenants exercise renewal options: with all renewals taken, the Delta Forge 2 contract could produce approximately $12.7 billion over a 30-year span.
Companywide, Applied Digital’s contracted portfolio now encompasses five campuses, representing 1.4 gigawatts of critical IT load supported by about 2.15 gigawatts of grid-connected utility power. Applied Digital said its contracted base-term lease revenue has risen to about $36 billion and would increase to roughly $86 billion if all renewal options across its portfolio are exercised.
Delta Forge 2 will employ Applied Digital’s waterless cooling technology and infrastructure designed for high-power density AI workloads. The company expects initial operations at the campus to commence in the first quarter of 2028.
Context and market reaction
The deal adds to a string of long-term capacity agreements for Applied Digital and reflects sustained demand from hyperscale customers for facilities optimized for artificial intelligence. The company emphasized the take-or-pay nature of the lease, which provides a defined revenue stream for the leased capacity over the contract term.
What remains undisclosed
- The identity of the hyperscaler was not provided.
- The company did not disclose additional commercial terms beyond the duration, revenue estimate and megawatt allocation.
Applied Digital’s announcement leaves a clearer picture of its contracted backlog and the scale of its AI-focused infrastructure ambitions while noting that key execution milestones remain ahead as the Delta Forge 2 campus prepares for initial operations in 2028.