Applied Digital Secures $7.5B Hyperscaler Lease for Polaris Forge 3, Boosting Total Contracted Revenue to $31B
APLD has more than doubled off its 52-week low of $6.43.
Summary
Applied Digital has secured a highly significant 15-year take-or-pay lease agreement with a U.S. based high investment-grade hyperscaler for its new Polaris Forge 3 AI Factory campus. This contract is valued at approximately $7.5 billion in base-term contracted revenue, with a potential to reach $18.2 billion if all renewal options are exercised. The agreement adds 300 MW of critical IT load, bringing Applied Digital's total contracted capacity across its four AI Factory campuses to 1.2 GW and total contracted lease revenue to an impressive $31 billion ($73 billion with all options). This substantial deal, which is the second with this specific hyperscaler, dramatically enhances the company's long-term revenue visibility and solidifies its strategic position as a key provider of high-performance computing infrastructure for AI workloads. Given the magnitude of the contract relative to the company's market capitalization, this represents a material de-risking of future revenue streams and a significant validation of its AI Factory model. Investors will now be watching for updates on the build-out and the anticipated commencement of operations at Polaris Forge 3 in August 2027, as well as progress on the additional 1.7 GW of power capacity the company is marketing.
At the time of this announcement, APLD was trading at $42.33 on NASDAQ in the Technology sector, with a market capitalization of approximately $11.3B. The 52-week trading range was $6.43 to $47.79. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.