Applied Digital Secures $18.2B AI Campus Lease, Boosts Pipeline to $31B
Applied Digital secured a 15-year AI campus lease with an investment-grade hyperscaler, worth up to $18.2 billion including a $7.5 billion base commitment, boosting its contracted pipeline to $31 billion across four sites. The company surpassed 1 GW in contracted capacity, delivered 104.9% revenue growth to $284 million, and reported a 40.6% adjusted EBITDA margin.
1. AI Campus Lease Agreement
Applied Digital signed a 15-year lease for its Polaris Forge 3 campus with an investment-grade hyperscaler partner, agreeing to a base revenue commitment of $7.5 billion and optional capacity pushing total potential value to $18.2 billion. This deal expands the company’s strategic partnership model and secures long-term cash flows.
2. Contracted Pipeline and Capacity Milestone
The new agreement raises Applied Digital’s contracted lease pipeline to $31 billion across Polaris Forge 1–4 campuses and marks over 1 GW of AI compute capacity under contract. This follows a 104.9% revenue increase to $284 million in the past year and a 40.6% adjusted EBITDA margin in the most recent quarter.
3. Execution and Risk Considerations
While the lease enhances long-term revenue visibility, execution and construction timelines remain critical variables; delays could affect project costs or revenue recognition. Sustained demand from hyperscalers and competitive capacity buildouts will determine future growth and utilization rates.