Applied Digital to Build $3.2bn Delta Forge 2 AI Data Center in Alabama

Applied Digital has confirmed that its $3.2 billion Delta Forge 2 AI data center will be constructed near Brookwood in Tuscaloosa County, Alabama, ending months of speculation about the location of a project first teased in June when the company disclosed it had secured a customer for a new 210MW facility.

The development represents a significant milestone for Applied Digital, which was founded in 2021 as Applied Blockchain and has since pivoted aggressively toward developing AI and high-performance computing data centers. The company's contracted portfolio now spans five AI Factory campuses totaling 1.4GW of critical IT load and approximately 2.15GW of grid-connected utility power, underscoring its ambition to become a major player in the rapidly expanding AI infrastructure market.

The Delta Forge 2 campus will be built on a 1,300-acre site and will span 1.2 million square feet (111,483 square meters) at full build-out. According to Applied Digital, the project will support up to 1,000 construction jobs and create 100 permanent roles, with operations expected to begin in 2028. The identity of the end user has not been disclosed, but Applied Digital describes the tenant as an "investment grade hyperscaler."

To strengthen its relationship with the local community, Applied Digital is committing $270 million in community benefits payments to the Tuscaloosa County Economic Development Authority over 20 years, alongside an estimated $131 million in tax revenue that will be generated for the area. City of Brookwood mayor Joe Barger welcomed the investment, saying, "For our community, this project is about creating opportunities for local families, strengthening our schools and positioning Brookwood for the future. We anticipate that Applied Digital will be a good neighbor and a long-term community partner, and expect this $3.2 billion investment to benefit Brookwood residents for generations to come."

The Alabama project adds to Applied Digital's growing footprint across the United States. Its Polaris Forge 1 and 2 hyperscale campuses are located in Ellendale and Harwood, North Dakota, with the former set to be leased to CoreWeave and much of the latter earmarked for an unnamed investment-grade hyperscaler. Polaris Forge 3, situated on 600 acres in an unnamed northern state, will offer 300MW of critical IT load to the same US-based hyperscaler that previously signed on for capacity at the Delta Forge 1 campus, with initial operations anticipated to commence in August 2027.

Wes Cummins, chairman and CEO of Applied Digital, framed the Alabama project as part of a broader strategic vision. "Delta Forge 2 reflects the model we are building across Applied Digital – repeatable AI infrastructure delivered at scale and built for the long term," he said. "But our success also depends on the success of the communities where we operate. We partner with communities where our investment genuinely matters, and where the resulting jobs, tax base, and long-term economic activity can have a measurable impact. We have a proven track record of delivering on our commitments to our host communities, and we look forward to bringing that same commitment to Brookwood."

The announcement comes amid a nationwide surge in AI data center development, as hyperscalers and colocation providers race to secure power, land, and community support for facilities capable of handling the intense computational demands of artificial intelligence workloads. Applied Digital's ability to secure a 210MW customer before even announcing a site reflects the acute demand for AI-ready capacity, and its willingness to commit substantial community benefits packages signals the growing importance of local stakeholder engagement in winning project approvals.