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Applied Digital Secures $7.5 Billion, 15-Year Hyperscaler Lease for 300 MW at Delta Forge 1

The deal lifts contracted revenue above $23 billion.

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Applied Digital’s new financing improves visibility into funding its buildout, but leverage remains a key risk as the capital-intensive model scales.
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Overview

  • A 15-year lease announced Thursday with an unnamed U.S. hyperscaler commits 300 megawatts at the Delta Forge 1 campus for about $7.5 billion.
  • The agreement raises Applied Digital’s contracted lease revenue to more than $23 billion, with over half now backed by investment-grade customers.
  • Applied Digital outlined up to $600 million in new financing, including a $300 million bridge for the 150 MW Building 3 at Polaris Forge 1 and an up to $300 million revolving credit line.
  • Shares jumped roughly 9% to 12% after the news, adding close to $1 billion in market value as investors priced in longer-term revenue visibility.
  • Delta Forge 1 is a 430 MW AI data center campus spanning more than 500 acres, designed for high-density power and advanced cooling, with initial operations targeted for mid-2027 as hyperscalers pre-book scarce power and compute capacity.