Why it matters
The strategic read
Extends Applied Digital from four large AI Factory campuses to five and adds another investment-grade hyperscaler commitment before the site is publicly named. The new lease pushes Applied Digital to 1.4 GW of contracted critical IT load and roughly 2.15 GW of gross grid-connected utility power, making its franchise model one of the clearest public examples of AI demand turning powered campuses into contracted infrastructure.
Source-supported terms
What was disclosed
- 01
Applied Digital announced on June 8, 2026 that it entered into a new long-term lease agreement at Delta Forge 2, a purpose-built AI Factory campus in a new southern state.
- 02
The lease is with a U.S.-based high investment-grade hyperscaler and marks Applied Digital's fifth AI Factory campus overall.
- 03
The agreement covers 210 MW of critical IT load under a 15-year take-or-pay structure with renewal options.
- 04
Applied Digital says the lease represents approximately $5.2B of base-term contracted revenue, or approximately $12.7B if all renewal options are exercised over a 30-year total term.
- 05
The company said this is its third long-term lease with the same U.S.-based investment-grade hyperscaler.
- 06
After the Delta Forge 2 agreement, Applied Digital says its contracted portfolio spans five AI Factory campuses, 1.4 GW of critical IT load, approximately 2.15 GW of grid-connected utility power and approximately $36B of base-term lease revenue.
- 07
Applied Digital said total contracted lease revenue would be approximately $86B if all renewal options are exercised across the platform.
- 08
Approximately 70% of contracted revenue is now backed by U.S.-based investment-grade hyperscalers.
- 09
Delta Forge 2 is planned around Applied Digital's proprietary waterless cooling technology and high-power-density infrastructure for large-scale AI training and inference workloads.
- 10
Initial operations are anticipated to commence in Q1 2028.
Disclosure boundary
What is known—and what is not
Primary Applied Digital press release. Public details disclose the tenant credit category, lease structure, critical IT load, base and renewal economics, portfolio-level contracted capacity, cooling/power-density positioning and initial operations target. Public materials do not disclose the hyperscaler identity, exact southern-state site, full lease agreement, power-supply contracts, grid interconnection terms, project financing, EPC awards, detailed construction schedule, service-level terms or renewal-option mechanics.