Applied Digital (APLD) Stock Surges on $7.5B Hyperscaler Lease Deal

TLDR

• Applied Digital signed a 15-year lease worth ~$7.5B with a U.S. investment-grade hyperscaler at its Delta Forge 1 campus.
• The deal covers 300 MW of critical IT load for AI and high-performance computing.
• Total contracted lease revenue now exceeds $23B, with over 50% from investment-grade customers.
• Applied Digital now has three hyperscale tenants and two U.S.-based investment-grade hyperscalers across its portfolio.
• The company plans up to $600M in new credit facilities to fund ongoing development.

Applied Digital stock jumped roughly 12% on Wednesday after the company announced a major lease agreement with a U.S.-based, investment-grade hyperscaler at its Delta Forge 1 AI campus.

Applied Digital Corporation, APLD

The lease covers 300 MW of critical IT load and is valued at approximately $7.5 billion over a 15-year term. The campus is designed to support AI training and high-performance compute workloads.

Delta Forge 1 spans more than 500 acres and is currently under construction. Initial operations are expected to begin in mid-2027.

The deal is Applied Digital’s second U.S.-based investment-grade hyperscaler across its AI Factory portfolio, bringing its total hyperscale tenant count to three.

With this agreement, the company’s total contracted lease revenue has climbed past $23 billion. More than half of that figure is now backed by investment-grade customers.

New Credit Facilities

Applied Digital also disclosed plans for up to $600 million in new financing. That includes a $300 million senior secured bridge facility to fund continued development of Building 3 at its Polaris Forge 1 campus, which houses a 150 MW data center.

The company also plans a $300 million revolving credit facility for pre-lease and post-lease development activities across its platform. Both facilities are expected to close promptly through a syndicate of bank lenders.

The Delta Forge 1 campus uses high-density power delivery and advanced cooling architecture. Applied Digital builds its campuses on a repeatable AI Factory model built for large-scale training and inference workloads.

Analyst Views

The most recent analyst rating on APLD is a Buy with a $40 price target.

TipRanks’ AI tool rates APLD as Neutral, citing strong technical momentum and a large contracted pipeline, but also noting ongoing GAAP losses, high leverage, and negative free cash flow.

Applied Digital’s current market cap sits at approximately $8.95 billion.

The stock was up around 12% on the day following the announcement.

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