Applied Digital secures a 15-year, $7.5 billion lease with a major U.S. hyperscaler, signaling a significant pivot from its crypto-mining origins to a major player in AI infrastructure.
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Applied Digital Soars 10% on $7.5 Billion AI Data Center Deal
Applied Digital’s stock (NASDAQ: APLD) surged over 10 percent after the company announced a $7.5 billion lease agreement for its new AI-focused data center, a move that adds a second U.S. hyperscaler to its client roster and pushes its total contracted revenue past $23 billion.
"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, in a statement.
The 15-year agreement covers 300 megawatts of critical IT load at the company’s Delta Forge 1 campus. The facility is purpose-built for high-performance compute and AI workloads, with initial operations expected to begin in mid-2027. The deal increases Applied Digital's investment-grade-backed revenue to over 50 percent of its total contracted portfolio.
This deal solidifies Applied Digital's transition toward the high-demand AI data center market, directly competing for the infrastructure buildout required by cloud giants like Amazon Web Services and Google. For a company with a market cap under $10 billion, locking in a $7.5 billion contract provides significant long-term revenue visibility that could lead to a major re-rating from investors.
From Crypto Miner to AI Landlord
Founded in 2021 and initially known for its work in the cryptocurrency mining space, Applied Digital has strategically pivoted to become a builder and operator of large-scale data centers for AI. This latest agreement is the most significant validation of that strategy to date. The company's stock has seen a volatile year, with a 52-week range stretching from a low of $4.04 to a high of $42.27, reflecting both the high-growth potential and the risks of its transition.
The new contract helps de-risk the company's revenue by shifting its client base further away from crypto-related businesses and toward long-term leases with stable, investment-grade technology giants. According to data from MarketBeat, analysts hold a "Moderate Buy" consensus rating on the stock, and this deal will likely reinforce bullish outlooks.
The AI Factory Model Takes Hold
The lease is centered on the Delta Forge 1 campus, a facility spanning more than 500 acres engineered specifically for large-scale AI workloads. Applied Digital's repeatable "AI Factory" model integrates high-density power and cooling architectures required for next-generation chips from hardware makers like Nvidia.
To fuel its aggressive buildout, Applied Digital also announced it expects to secure up to $600 million in new financing. This includes a $300 million bridge facility to continue work on its Polaris Forge 1 campus and a $300 million revolving credit facility for further development, signaling a strong pipeline of future projects.
This article is for informational purposes only and does not constitute investment advice.
[1] Applied Digital stock surges on $7.5B hyperscaler lease deal[2] Applied Digital Announces New U.S. Based High Investment-Grade Hyperscaler Tenant at Delta Forge 1, a 430 MW AI Factory Campus[3] Mirae Asset Global Investments Co. Ltd. Makes New Investment in Applied Digital Corporation $APLD - MarketBeat[4] APLD (Applied Digital Corporation) shares climb 4.79 percent despite far wider than expected Q1 2026 per share losses. - Best Pick - Cổng thông tin điện tử tỉnh Lào Cai
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