Applied Digital Signs $5.2 Billion AI Data Center Lease with U.S. Hyperscaler
June 8, 2026
Applied Digital Signs $5.2 Billion AI Data Center Lease with U.S. Hyperscaler
Applied Digital has entered into a 15-year lease agreement with a U.S.-based hyperscaler at its Delta Forge 2 site, a deal expected to generate approximately $5.2 billion in revenue over the term. The announcement sent the company’s shares up 8.7% in extended trading, reflecting investor enthusiasm for the growing demand for AI infrastructure.
The lease covers 210 megawatts of computing capacity at Delta Forge 2, Applied Digital’s new AI Factory campus, under a take-or-pay structure that guarantees revenue regardless of usage. The company did not disclose further details about the customer but noted that this marks its third long-term lease with the same investment-grade hyperscaler. If all renewal options are exercised, the contract could generate about $12.7 billion in revenue over a 30-year period.
Major technology companies are significantly increasing their spending on data centers to support powerful artificial intelligence models, boosting demand for electricity, computing capacity, and specialized facilities. About 70% of Applied Digital’s contracted revenue is now backed by U.S.-based investment-grade hyperscalers, the company said on Monday, underscoring the shift toward high-credit tenants in the AI data center market.
Applied Digital’s contracted portfolio now spans five campuses, representing 1.4 gigawatts of critical IT load and approximately 2.15 gigawatts of grid-connected utility power. The company stated that its contracted base-term lease revenue has increased to about $36 billion, and would rise to roughly $86 billion if all renewal options are exercised. Delta Forge 2 will utilize Applied Digital’s waterless cooling technology and high-power density infrastructure, specifically designed for AI workloads. Initial operations at the campus are expected to begin in the first quarter of 2028.
Source: finance.yahoo
