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Applied Digital: Applied Digital announced Thursday that it has secured a long-term lease valued at $7.5 billion with an undisclosed U.S.-based hyperscale customer.
The agreement is tied to the company’s new Delta Forge 1 facility.
The deal is expected to strengthen Applied Digital’s role as a key infrastructure provider for artificial intelligence workloads.
The company did not disclose the identity of the customer but confirmed it is a major hyperscaler operating in the United States.
The lease underscores growing demand for high-performance data centers designed to support AI and advanced computing needs.
Following the announcement, Applied Digital shares surged more than 12% in early trading.
Investors reacted positively to the scale of the agreement and its potential to drive long-term revenue growth.
Applied Digital said the 15-year agreement will cover 300 megawatts of computing capacity at its 430-megawatt Delta Forge 1 facility in the southern United States.
The site is designed to support large-scale, high-performance computing operations.
The company noted that the deal brings in its second U.S.-based, investment-grade hyperscale tenant across its data center portfolio.
The addition significantly expands its customer base in the rapidly growing artificial intelligence infrastructure market.
With the new agreement in place, Applied Digital’s total contracted lease revenue now exceeds $23 billion.
The milestone highlights strong demand for long-term data center capacity from major technology clients.
The agreement comes as demand for data center capacity continues to surge.
Major technology firms, including Amazon, Google, Meta Platforms, Microsoft, and Oracle, are collectively investing billions of dollars to secure infrastructure capable of supporting artificial intelligence systems.
These companies, often referred to as hyperscalers, require facilities with advanced computing power and cooling capacity to meet growing AI workloads.
Applied Digital said that more than half of its contracted revenue is now supported by investment-grade customers.
The shift reflects increasing reliance on financially strong tenants to underpin long-term growth in the data center sector.
Applied Digital is expanding its footprint in the fast-growing digital infrastructure sector.
The company builds and operates large-scale data centers tailored for artificial intelligence, cloud services, and other high-demand computing workloads.
This positioning places the firm among key beneficiaries of the accelerating global investment in AI infrastructure.
In a separate statement, Applied Digital outlined plans to secure up to $600 million in financing.
The package is expected to include a $300 million senior secured bridge facility to support development at its Polaris Forge 1 campus.
The company is also seeking an additional revolving credit facility of up to $300 million.
That funding will be used to advance broader development efforts and support general working capital needs.
Applied Digital’s Delta Forge 1 represents its latest expansion in large-scale data center infrastructure.
The campus covers more than 500 acres and is purpose-built to accommodate high-demand artificial intelligence workloads.
The facility is being equipped with robust power capacity and advanced cooling technology to support intensive computing operations.
The company expects the site to begin initial operations around mid-2027.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
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