Applied Digital reported a new long-term lease for 210 MW of capacity at its Delta Forge 2 AI data center campus, a deal that the company said will generate approximately $5.2 billion in base-term contracted revenue. The take-or-pay agreement spans 15 years and is with a U.S.-based, high investment-grade hyperscaler. Applied Digital added the lease will expand to roughly $12.7 billion if all renewal options are exercised, extending the arrangement to a 30-year total term.
The company noted this is its third long-term contract with the same hyperscaler and represents Applied Digital’s fifth AI Factory campus overall. Following the agreement, the firm said its contracted portfolio now totals about $36 billion in base-term lease revenue across five AI Factory campuses, or approximately $86 billion if all renewal options are exercised.
Applied Digital also provided capacity figures tied to its contracts: the company’s contracted capacity now covers about 1.4 GW of critical IT load and roughly 2.15 GW of grid-connected utility power. The company indicated that around 70% of its contracted revenue is now backed by U.S.-based investment-grade hyperscalers.
Shares of Applied Digital rose 9.6% in after-hours trading on Monday following the announcement.
Delta Forge 2, the site tied to the new lease, is located in a southern state and will be built with Applied Digital’s proprietary waterless cooling technology and high-power density infrastructure. The company said the campus is being designed to support large-scale AI training and inference workloads. Initial operations at Delta Forge 2 are anticipated to commence in the first quarter of 2028.
"Two years ago, we made a deliberate decision to build a company that scales, not just builds data centers," said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. "We call it our franchise model - a core team of design, construction, and operations professionals replicated across every campus, in every market. Continued demand from leading hyperscalers across five campuses is strong validation of our model."
The Dallas-based company designs, builds, and operates data centers tailored for artificial intelligence, cloud, networking, and blockchain workloads. The firm emphasized that the new lease is part of a broader expansion of its AI Factory footprint and long-term contracted portfolio.
What this means
- The agreement further anchors Applied Digital’s revenue profile with a large, long-duration contract from a high investment-grade hyperscaler.
- Contract metrics increase the company’s reported base-term lease revenue and expand its committed IT and utility power capacity.
- The Delta Forge 2 campus will deploy Applied Digital’s waterless cooling and high-power density systems to serve AI training and inference workloads, with initial operations targeted for Q1 2028.