15-Year AI Data Center Lease Secures Tens of Trillions in Revenue for U.S. Infrastructure Firm

Applied Digital Corporation (NASDAQ: APLD) announced that it has signed a 15-year lease with a U.S. investment-grade hyperscaler at its Delta Forge 1 AI Factory campus in the U.S. Gulf South region. The agreement secures approximately $7.5 billion in contracted revenue for 300 MW of IT load, bringing the company’s total contracted lease revenue to over $23 billion. Having fully commissioned 100 MW of direct liquid-cooled HPC capacity at Polaris Forge 1, Applied Digital is now advancing an additional 150 MW of capacity, as well as 200 MW at Polaris Forge 2 and 430 MW at Delta Forge 1. To fund these developments, the company is arranging a $2.15 billion private placement of senior secured notes due 2031, securing $100 million in development financing, and finalizing lease enhancements with CoreWeave. It also plans to raise up to $300 million in a senior bridge loan and a $300 million revolving credit facility to support construction, working capital, and transaction costs.

For the third quarter of fiscal 2026, ended February 28, Applied Digital reported revenue of $126.6 million, a 139% increase year-over-year. On a GAAP basis, it recorded a net loss of $100.9 million; on a non-GAAP basis, it delivered adjusted net income of $33.2 million and adjusted EBITDA of $44.1 million. During the quarter, the company also advanced the spin-off and planned Nasdaq listing of its cloud services business, Chronoscale, via a business combination with Exos Bionics. On May 1, Applied Digital signed a $15.75 million private placement agreement with institutional investors for the transaction, reclassified the cloud unit as a continuing operation, and reaffirmed its strategic focus on data center and HPC hosting.

According to the company’s investor relations update, the cloud-business separation was completed on May 5, with Chronoscale officially launching as an independent Nasdaq-listed company. On May 4, Applied Digital separately announced the execution of a $300 million senior bridge loan to support the development of Delta Forge 1 and Polaris Forge. Recent regulatory filings show that U.S. institutional investors—including Vanguard Group and TFR Capital—have increased their stakes in APLD, highlighting growing interest in the North American capital markets.

Applied Digital is a U.S. infrastructure firm that designs, builds, and operates high-density data centers and AI factory campuses to meet rising demand for artificial intelligence and high-performance computing. Leveraging its large-scale Polaris Forge and Delta Forge campuses, the company continues to expand its backlog through long-term leases with investment-grade hyperscalers. This AI-focused data center development and leasing model is spreading across the North American digital infrastructure sector, driven by global cloud and big-tech companies’ need for rapid deployment of large-scale GPU infrastructure.