TLDR
- Applied Digital signed a 15-year lease worth ~$7.5B with a U.S. investment-grade hyperscaler at its Delta Forge 1 campus.
- The deal covers 300 MW of critical IT load for AI and high-performance computing.
- Total contracted lease revenue now exceeds $23B, with over 50% from investment-grade customers.
- Applied Digital now has three hyperscale tenants and two U.S.-based investment-grade hyperscalers across its portfolio.
- The company plans up to $600M in new credit facilities to fund ongoing development.
Applied Digital stock jumped roughly 12% on Wednesday after the company announced a major lease agreement with a U.S.-based, investment-grade hyperscaler at its Delta Forge 1 AI campus.
Applied Digital Corporation, APLD
The lease covers 300 MW of critical IT load and is valued at approximately $7.5 billion over a 15-year term. The campus is designed to support AI training and high-performance compute workloads.
Delta Forge 1 spans more than 500 acres and is currently under construction. Initial operations are expected to begin in mid-2027.
#NEWS: Applied Digital announces a new U.S. based high investment-grade hyperscaler tenant at Delta Forge 1, a 430 MW AI Factory campus. $APLD
This lease represents ~$7.5 billion in total contracted value over a ~15-year term and supports 300 MW of critical IT load.
This marks… pic.twitter.com/CAYKEJtJK0
— Applied Digital (@APLDdigital) April 23, 2026
The deal is Applied Digital’s second U.S.-based investment-grade hyperscaler across its AI Factory portfolio, bringing its total hyperscale tenant count to three.
With this agreement, the company’s total contracted lease revenue has climbed past $23 billion. More than half of that figure is now backed by investment-grade customers.
CEO Wes Cummins said the deal marks “an important step in the continued diversification of our customer base,” adding that it strengthens the visibility of contracted revenue going forward.
New Credit Facilities
Applied Digital also disclosed plans for up to $600 million in new financing. That includes a $300 million senior secured bridge facility to fund continued development of Building 3 at its Polaris Forge 1 campus, which houses a 150 MW data center.
The company also plans a $300 million revolving credit facility for pre-lease and post-lease development activities across its platform. Both facilities are expected to close promptly through a syndicate of bank lenders.
The Delta Forge 1 campus uses high-density power delivery and advanced cooling architecture. Applied Digital builds its campuses on a repeatable AI Factory model built for large-scale training and inference workloads.
Analyst Views
The most recent analyst rating on APLD is a Buy with a $40 price target.
TipRanks’ AI tool rates APLD as Neutral, citing strong technical momentum and a large contracted pipeline, but also noting ongoing GAAP losses, high leverage, and negative free cash flow.
Applied Digital’s current market cap sits at approximately $8.95 billion.
The stock was up around 12% on the day following the announcement.
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