Applied Digital Secures $5.2B, 15-Year AI Data Center Lease with Hyperscaler
APLD has more than doubled off its 52-week low of $9.02 on elevated volume (2.0× avg).
Summary
Applied Digital announced a major 15-year, $5.2 billion lease agreement for its Delta Forge 2 AI data center with a high investment-grade hyperscaler, significantly boosting its long-term revenue.
Key Events · M&A and Partnerships · APLD
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New Long-Term Lease Agreement
Applied Digital secured a 15-year take-or-pay lease for 210 MW of critical IT load at its Delta Forge 2 AI Factory campus.
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Significant Contracted Revenue
The agreement is expected to generate approximately $5.2 billion in base-term contracted revenue, with potential for $12.7 billion if all renewal options are exercised over 30 years.
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High-Quality Counterparty
The lease is with a U.S. based high investment-grade hyperscaler, marking the third such agreement with this customer.
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Expanded AI Factory Portfolio
This deal brings the company's total contracted portfolio to 1.4 GW of critical IT load and approximately $36 billion in base-term lease revenue across five AI Factory campuses.
Analysis · APLD · Technology
This 8-K formally discloses a new 15-year take-or-pay lease agreement for 210 MW at the Delta Forge 2 campus, projected to generate approximately $5.2 billion in base-term contracted revenue. This significant contract with a high investment-grade hyperscaler substantially expands Applied Digital's long-term revenue visibility and validates its AI Factory franchise model. The deal brings the total contracted portfolio to approximately $36 billion, reinforcing the company's position in the high-performance computing market.
At the time of this filing, APLD was trading at $41.35 on NASDAQ in the Technology sector, with a market capitalization of approximately $12B. The 52-week trading range was $9.02 to $50.73. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.