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3w ago

Applied Digital Lands 15-Year, 210 MW Lease for Delta Forge 2

The agreement boosts the company’s contracted base-term lease revenue and signals stronger hyperscaler demand for purpose-built AI data centers.

AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration
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Overview

  • Applied Digital announced on Monday, June 8, 2026 a 15-year take-or-pay lease for 210 MW of critical IT load at its Delta Forge 2 AI Factory, valued at about $5.2 billion over the base term.
  • The deal is the company’s third long-term lease with the same unnamed U.S. investment-grade hyperscaler and expands Applied Digital’s portfolio to five AI Factory campuses and roughly 1.4 GW of contracted critical IT load.
  • Delta Forge 2 will use Applied Digital’s proprietary waterless cooling and high-power density infrastructure and is expected to begin initial operations in Q1 2028.
  • Markets reacted positively with shares rising in after-hours and pre-market trading and analysts at Needham and Compass Point raising price targets after the announcement.
  • The lease strengthens a predictable revenue base that supports Applied Digital’s heavy capital plans, but the company is also proceeding with large debt offerings and revolvers to finance multiple simultaneous campus builds.