Applied Digital Secures $7.5 B AI Lease, Contracts Over 1 GW, Stock Surges 21%
Applied Digital’s shares rose over 21% after securing a 15-year, 300 MW Polaris Forge 3 lease that lifts its global contracted AI IT capacity above 1 GW and locks in about $7.5 B of revenue. Shares trade at ~32x forward EV/sales and 136x EV/EBITDA, reflecting elevated investor confidence in its infrastructure backlog.
1. Record Stock Surge
Applied Digital’s stock jumped over 21%, marking its strongest intraday gain in more than a decade as investors reacted to its landmark AI infrastructure deal. This surge propelled the shares to their highest level since early 2014, driven by optimism around long-term contracted cash flows.
2. $7.5 B Lease Agreement
The company signed a 15-year, take-or-pay lease for 300 MW of capacity at its Polaris Forge 3 data center campus with a large U.S. hyperscale customer. That commitment is expected to generate approximately $7.5 B in revenue over the initial lease term.
3. 1 GW Global Contracted Capacity
With this latest deal, Applied Digital’s total contracted AI IT load surpasses 1 GW worldwide, validating its transformation from speculative data-center developer to a scaled AI infrastructure provider. Repeat hyperscaler demand now accounts for the bulk of its backlog.
4. Valuation Metrics and Investor Sentiment
Applied Digital trades at roughly 32x forward EV/sales and 136x EV/EBITDA, levels that underscore strong market confidence in backlog conversion and future margin expansion. Retail sentiment on social platforms remains firmly bullish, reflecting widespread anticipation of further contract announcements.