Applied Digital has locked in a blockbuster 15-year lease for its Delta Forge 2 AI Factory campus with a U.S.-based, investment-grade hyperscaler — a deal the company says could generate roughly $5.2 billion in revenue over the base term. The contract, announced Monday, sent Applied Digital shares up about 8.7% in after-hours trading and adds 210 megawatts of contracted AI computing capacity to its portfolio.
Key details
- Tenant: unnamed U.S.-based investment-grade hyperscaler (Applied Digital says this is its third long-term lease with the same customer).
- Term & structure: 15-year base term with a take-or-pay structure; renewal options could extend total contract value to about $12.7 billion over 30 years.
- Capacity: adds 210 MW of contracted AI compute capacity at Delta Forge 2.
- Timeline: initial operations expected in Q1 2028.
- Tech note: campus designed for high-power-density computing and will use waterless cooling.
Broader portfolio impact
- Applied Digital now reports five contracted campuses representing 1.4 GW of critical IT load and about 2.15 GW of grid-connected utility power.
- Contracted base-term lease revenue across the company is about $36 billion; if all renewals are exercised this could rise to roughly $86 billion.
- About 70% of its contracted revenue now comes from U.S.-based investment-grade hyperscalers, the company said.
Why it matters for crypto and infrastructure watchers
The deal underscores growing, long-term hyperscaler demand for specialized, high-power AI facilities — facilities that overlap with the sort of power- and cooling-intensive infrastructure also relevant to crypto miners and other high-performance workloads. Applied Digital’s waterless cooling and high-density design signal a continued industry shift toward purpose-built campuses optimized for heavy compute demand, which in turn affects power markets, data center supply, and infrastructure investment priorities.
Applied Digital declined to disclose the customer’s planned workloads or further technical specifics. The company framed the lease as another step in expanding its customer-backed data center pipeline amid rising demand for AI infrastructure.
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