Applied Digital has secured nearly 600 megawatts of AI data center capacity under long-term leases, translating into approximately $16 billion of projected lease revenue over the next 15 years. Of this total, 400 MW at Polaris Forge 1 is committed to CoreWeave and 200 MW at Polaris Forge 2 to an unnamed investment-grade hyperscaler. These contracts dramatically improve the company’s revenue and cash flow predictability, providing a clear line of sight into future cash generation.

The company’s Polaris Forge 1 and Polaris Forge 2 campuses are each designed to scale from current commitments up to at least 1 gigawatt of capacity, with potential to exceed 2 gigawatts subject to power availability. In addition, Applied Digital has broken ground on Delta Forge 1, a 430-MW AI data center campus slated to begin operations in mid-2027. Management’s modular design approach—leveraging prefabricated components and simultaneous concrete plant deployments—underscores its ability to replicate and accelerate build-out across multiple sites.

In the second quarter of fiscal 2026, ending November 30, revenue increased by 250% year-over-year to $126.6 million. Wall Street consensus forecasts revenue of roughly $346.7 million for fiscal 2026 and about $546 million for fiscal 2027, reflecting sustained demand for AI-optimized infrastructure. Despite recent net losses, the company’s lease revenue model and anticipated fit-out fees from hyperscaler tenants position it to improve margins as scale increases.

Applied Digital trades at a premium valuation but operates in a market where analysts project a supply shortfall of approximately 10 GW of AI data center capacity over the next three years. With land or utility agreements in place for 4.3 GW of future build capacity and targets to reach 5 GW within five years, the company is well positioned to capture additional contracts at favorable lease rates—estimated at $25 million per megawatt—while maintaining construction costs in the $11–$13 million per megawatt range.