Applied Digital AI data center lease: $5.2B contracted revenue

Applied Digital has secured an AI data center lease tied to its Delta Forge 2 campus with a U.S.-based investment-grade hyperscaler. The company says the AI data center lease could generate about $5.2 billion in revenue over the 15-year base term, using a take-or-pay structure that supports contracted revenue throughout the lease. If renewal options are fully exercised, total revenue could reach roughly $12.7 billion over 30 years. Applied Digital did not name the customer, but said the deal is its third long-term lease with the same hyperscaler type. The agreement adds 210 MW of contracted AI computing capacity and expands its contracted portfolio to five campuses. Across the portfolio, Applied Digital reports 1.4 GW of critical IT load and about 2.15 GW of grid-connected utility power. It also states that contracted base-term lease revenue has grown to around $36 billion, potentially rising to about $86 billion with renewals. The Delta Forge 2 site is designed for high-power density computing and will use waterless cooling technology. Initial operations are expected to begin in Q1 2028 / early 2028. Applied Digital links the contract to rising demand for AI infrastructure and notes that about 70% of its contracted revenue now comes from U.S.-based investment-grade hyperscalers. Market reaction: Applied Digital shares reportedly rose 8.7% in extended trading after the announcement. Key terms for traders: an AI data center lease that boosts contracted visibility and signals continued hyperscaler spending on AI capacity, which can influence broader risk sentiment in the tech sector.