Overview
- Applied Digital announced on June 8 that it signed a 15‑year take‑or‑pay lease for 210 megawatts of critical IT load at Delta Forge 2 worth about $5.2 billion in the base term and roughly $12.7 billion if all renewal options are exercised.
- The deal pushes the company’s contracted portfolio to five AI Factory campuses with about 1.4 gigawatts of leased critical IT load and roughly $36 billion in base‑term lease revenue, rising to about $86 billion if all options are taken.
- To finance simultaneous campus builds the company has been tapping debt markets and on June 9 priced $1.59 billion of 7.000% senior secured notes through APLD ComputeCo 3 to fund ELN‑04 at Polaris Forge 1 and repay a Goldman Sachs bridge loan, with the offering expected to close around June 16.
- Investors and analysts reacted positively to the Delta Forge 2 announcement with shares rising about 8–11% in extended trading and several firms raising price targets, reflecting improved revenue visibility from long‑term, take‑or‑pay contracts.
- Delta Forge 2 targets initial operations in Q1 2028, but the company’s rapid, debt‑backed expansion raises execution and refinancing risks because a large share of revenue is concentrated with a single unnamed hyperscaler and on‑time, on‑budget delivery is required to support project financing and local job creation.