Applied Digital secures $5.2 billion AI data center lease

Applied Digital has signed a 15-year lease with a U.S.-based hyperscaler for its Delta Forge 2 campus. The company said the agreement could generate about $5.2 billion in revenue during the base term.

Applied Digital shares rose 8.7% in extended trading after the announcement. The deal adds 210 megawatts of contracted AI computing capacity to the company’s portfolio.

Delta Forge 2 secures hyperscaler lease

According to Applied Digital, the new lease covers capacity at its Delta Forge 2 AI Factory campus. The company did not name the customer in its Monday announcement. However, it said the agreement represents its third long-term lease with the same investment-grade hyperscaler. The deal uses a take-or-pay structure, which supports contracted revenue over the lease period. Applied Digital said the customer is based in the United States.

The company said the 15-year base term could produce about $5.2 billion in revenue. If the customer exercises all renewal options, total revenue could reach about $12.7 billion over 30 years. Applied Digital also said about 70% of its contracted revenue now comes from U.S.-based investment-grade hyperscalers. The latest contract expands its customer-backed data center pipeline. The company linked the lease to rising demand for AI infrastructure.

AI workloads drive data center demand

Large technology companies continue raising spending on data centers for artificial intelligence systems. These facilities require power, computing capacity, and infrastructure built for heavy workloads. Applied Digital said Delta Forge 2 will support high-power density computing needs. The campus will use waterless cooling technology. Initial operations at the site are expected to begin in the first quarter of 2028.

The Delta Forge 2 agreement comes as AI developers seek more specialized facilities. Applied Digital’s campus design focuses on workloads that need large energy and cooling capacity. The company said its infrastructure supports advanced computing requirements. Hyperscalers have increased long-term leasing activity as AI models require more resources. Applied Digital did not disclose technical details about the customer’s planned workloads.

The contracted portfolio reaches five campuses

Applied Digital said its contracted portfolio now spans five campuses. Those sites represent 1.4 gigawatts of critical IT load. The company also reported about 2.15 gigawatts of grid-connected utility power across the portfolio. Its contracted base-term lease revenue has increased to about $36 billion. If all renewal options move forward, the figure could rise to roughly $86 billion.The company said the new lease strengthens its contracted revenue base.

Applied Digital also said hyperscaler-backed agreements now make up most of its contracted revenue. The latest deal adds another long-term commitment to its data center platform. Shares rose after the market closed following the announcement. The company expects Delta Forge 2 operations to start in early 2028.