Applied Digital Lands $7.5B Hyperscaler Lease for 300MW at Delta Forge 1 Campus
Applied Digital secured a 15-year, $7.5 billion lease with a U.S. investment-grade hyperscaler for 300 megawatts at its Delta Forge 1 AI Factory campus, lifting total contracted revenue to over $23 billion. The stock jumped over 12% as the deal added a third hyperscale client and deepened revenue visibility.
1. Hyperscaler Lease Agreement
Applied Digital signed a 15-year lease valued at $7.5 billion with a U.S. investment-grade hyperscaler for 300 megawatts of IT load at its Delta Forge 1 AI Factory campus.
2. Revenue and Client Diversification
The transaction raises the company's total contracted revenue to over $23 billion and brings in a third hyperscale customer, with more than half of contracted revenue now backed by investment-grade clients.
3. Market Reaction and Stock Impact
Following the announcement, shares rose more than 12%, driving market capitalization to approximately $10.4 billion and reflecting strong investor confidence in the company's AI infrastructure growth prospects.
4. Future Development and Financing
Initial operations at Delta Forge 1 are expected to begin in mid-2027, and Applied Digital plans to secure up to $600 million in senior secured credit facilities to fund ongoing campus development and general working capital needs.