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Applied Digital Lands $7.5B Hyperscaler Deal
23 Apr
Summary
- Applied Digital secured a 15-year lease valued at $7.5 billion.
- The agreement involves 300 megawatts of critical IT load for AI.
- This deal brings total contracted revenue to over $23 billion.
Applied Digital shares experienced a significant rally as the company announced a substantial lease agreement for its 430 MW Delta Forge 1 AI Factory campus. This 15-year lease, valued at approximately $7.5 billion, covers 300 megawatts of critical IT load, designed to support artificial intelligence and high-performance computing infrastructure.
The agreement positions a U.S. investment-grade hyperscaler as a tenant, marking a key diversification for Applied Digital. This new tenant is the company's third hyperscale client, contributing to a total contracted lease revenue exceeding $23 billion. Currently, over half of this contracted revenue is backed by investment-grade customers.
The Delta Forge 1 campus itself spans over 500 acres and is engineered for large-scale AI workloads, with operations projected to commence in mid-2027. Concurrently, Applied Digital is arranging a senior secured bridge facility of up to $300 million and a revolving credit facility of up to $300 million to fund ongoing development projects.
Looking ahead, Applied Digital is expected to release its next financial update on July 29, with analysts anticipating a revenue increase to $95.48 million. The stock currently holds a Buy rating with a consensus price target of $30.47.
