Overview
- The company disclosed on Wednesday that it signed a 15‑year, roughly $7.5 billion take‑or‑pay lease for 300 MW at Polaris Forge 3 with the same undisclosed U.S. hyperscaler that leased Delta Forge 1, bringing reported base contracted lease revenue to about $31 billion and total portfolio capacity to roughly 1.7 GW.
- Applied Digital said Polaris Forge 3 is designed for GPU‑dense AI workloads and targets operations in mid/late 2027, with some reports citing August 2027 as the start date.
- Markets reacted positively to the announcement with shares rising about 7.9–8% and multiple sell‑side firms raising price targets, including Needham, which cited repeat hyperscaler demand as a key driver.
- The company is advancing large financing packages that lean on lease visibility, including a reported $5 billion preferred equity facility with Macquarie (about $900 million drawn) and additional bridge and site financing, but those arrangements depend on closing and on project milestones.
- Key risks remain: the long leases pay out over 15 years rather than as upfront cash, and the value of the contracts hinges on executing complex construction, securing permits and grid power on schedule; if options are exercised the portfolio upside could rise substantially, and local job and construction activity will increase during build‑out.