Applied Digital (NASDAQ:APLD) shares climbed about 10% after the company disclosed a lease with a U.S.-based investment-grade hyperscaler at its Delta Forge 1 campus. The company said the agreement covers roughly 300 MW of critical IT load and is structured to support artificial intelligence and high-performance compute workloads.
The lease carries an approximate total contracted value of $7.5 billion, based on an estimated 15-year term. Applied Digital described the capacity as part of its AI Factory campus build-out and characterized the arrangement as its second U.S.-based investment-grade hyperscaler across three AI Factory sites.
Applied Digital said the new commitment pushes its total contracted lease revenue above $23 billion, and that more than half of that amount is backed by investment-grade customers. Company leadership framed the agreement as a meaningful step in broadening the quality and visibility of its contracted revenue stream.
"With this agreement, we now have two U.S. based investment-grade hyperscalers across our portfolio, marking an important step in the continued diversification of our customer base and strengthening the overall quality and visibility of our contracted revenue," said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital.
The Delta Forge 1 campus spans more than 500 acres and is being developed to accommodate large-scale AI workloads. Applied Digital highlighted the campus design, noting integration of high-density power delivery and advanced cooling architecture intended to support sustained, intensive compute operations. Initial operations at the site are anticipated to begin in mid-2027.
Alongside the lease announcement, Applied Digital outlined plans to secure development financing. The company expects to enter into an up to $300 million senior secured bridge facility to fund continued development of the 150 MW Building 3 data center at its Polaris Forge 1 campus. In addition, Applied Digital said it expects to establish an up to $300 million senior secured revolving credit facility intended for pre-lease and post-lease development activities across its platform.
Applied Digital indicated the credit facilities are expected to close promptly and will be provided by a syndicate of bank lenders. The company did not provide further detail on timing beyond describing the facilities as anticipated to close promptly.
Overall, the transaction represents a material contracted commitment tied to AI and high-performance computing demand and coincides with near-term financing plans to support ongoing campus construction and build-out.