Applied Digital Corporation (NASDAQ:APLD) shares are in focus today, a day after the company announced its fifth AI Factory campus lease — continuing a deal-signing streak that has rapidly transformed the Dallas-based data center developer into one of the most active builders of AI infrastructure in the country.
The Deal
After markets closed Monday, Applied Digital announced a new long-term lease at Delta Forge 2, a purpose-built AI Factory campus in an undisclosed southern state. The agreement covers 210 MW of critical IT load under a 15-year take-or-pay structure with renewal options, representing approximately $5.2 billion in base-term contracted revenue — or $12.7 billion if all renewal options are exercised over a 30-year term. The lease is with the same U.S.-based investment-grade hyperscaler that previously signed at Delta Forge 1, marking Applied Digital’s third agreement with that unnamed customer. Initial operations are anticipated to begin in Q1 2028.
The Bigger Picture
The Delta Forge 2 deal brings Applied Digital’s total contracted portfolio to approximately $36 billion across five AI Factory campuses — or $86 billion if all renewal options are exercised. The portfolio now spans 1.4 GW of critical IT load and approximately 2.15 GW of gross grid-connected utility power, with roughly 70% of contracted revenue backed by U.S.-based investment-grade hyperscalers.
“Two years ago, we made a deliberate decision to build a company that scales, not just builds data centers,” said CEO Wes Cummins. “Continued demand from leading hyperscalers across five campuses is strong validation of our model.”
The Run
The announcement comes after a remarkable stretch of deal activity. Applied Digital signed a $7.5 billion lease at Polaris Forge 3 late last month, and the stock has surged over 180% in the past 12 months. Shares closed up 3.34% Monday before extending gains nearly 9% in after-hours trading on the Delta Forge 2 news.
$1.59 Billion Notes Offering
Also this morning, Applied Digital announced a proposed offering of $1.59 billion in senior secured notes due 2031 through its subsidiary APLD ComputeCo 3 LLC. The proceeds will be used primarily to fund construction of 150 MW of critical IT load at the fourth building at Polaris Forge 1 — the company’s AI Factory campus in Ellendale, North Dakota — as well as to repay an existing Goldman Sachs bridge loan and cover transaction expenses. The offering is subject to market conditions and is being made in a private placement to qualified institutional buyers.
Applied Digital Shares Advance
APLD Price Action: At the time of publication, Applied Digital shares are trading 10.98% higher at $45.44, according to data from Benzinga Pro.
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