Key facts
- Applied Digital signed a 15-year lease for 210 megawatts of computing capacity at its Delta Forge 2 site.
- The lease is with a U.S.-based hyperscaler and is expected to generate about $5.2 billion in revenue.
- This is the third long-term lease with the same investment-grade hyperscaler.
- The deal utilizes a take-or-pay lease structure.
- If all renewal options are exercised, the contract could generate about $12.7 billion over 30 years.
- Initial operations at Delta Forge 2 are expected to begin in the first quarter of 2028.
Applied Digital has secured a significant 15-year lease agreement with an unnamed U.S.-based hyperscaler for 210 megawatts of computing capacity at its Delta Forge 2 AI Factory campus. This deal is projected to generate approximately $5.2 billion in revenue over its term, with the potential to reach $12.7 billion if all renewal options are exercised over a 30-year period.
The agreement, structured as a take-or-pay lease, underscores the increasing demand for specialized data center facilities to support artificial intelligence models. Approximately 70% of Applied Digital's current contracted revenue comes from U.S.-based, investment-grade hyperscalers, indicating a strong market position.
This marks the third long-term lease between Applied Digital and this specific hyperscaler. The Delta Forge 2 campus will feature waterless cooling technology and high-power density infrastructure designed for AI workloads. Initial operations are slated to commence in the first quarter of 2028.
Applied Digital's overall contracted portfolio now spans five campuses, representing 1.4 gigawatts of critical IT load and 2.15 gigawatts of grid-connected utility power. The company's contracted base-term lease revenue stands at about $36 billion, potentially rising to $86 billion with all renewals.