Applied Digital announced Monday it has secured a massive 15-year lease agreement with a major U.S. technology company that will generate approximately $5.2 billion in revenue, causing the company’s stock to surge 8.7% in after-hours trading.
The deal highlights the growing investment by large technology firms in data center infrastructure needed to power advanced artificial intelligence systems, creating increased demand for electricity, computing power and specialized facilities.
According to the company, roughly 70% of Applied Digital’s contracted revenue now comes from U.S.-based investment-grade hyperscalers.
The latest contract involves 210 megawatts of computing power at Delta Forge 2, Applied Digital’s newest AI Factory campus, structured as a take-or-pay lease arrangement.
While Applied Digital declined to identify the customer, the company revealed this marks its third long-term lease with the same investment-grade hyperscaler.
Should all renewal options be utilized, the agreement could potentially bring in around $12.7 billion in revenue across a 30-year timeframe.
Applied Digital’s current contracted portfolio encompasses five campuses, totaling 1.4 gigawatts of critical IT load and approximately 2.15 gigawatts of grid-connected utility power.
The company reported its contracted base-term lease revenue has grown to roughly $36 billion and could reach about $86 billion if all renewal options are executed.
Delta Forge 2 will feature Applied Digital’s waterless cooling technology and high-power density infrastructure specifically engineered for AI workloads. The campus is scheduled to begin initial operations during the first quarter of 2028.
