Applied Digital signed a 15-year lease worth $7.5 billion with an undisclosed U.S.-based hyperscaler at its Delta Forge 1 campus, the company said April 23.
The agreement covers 300 megawatts of critical IT load at the 430 MW campus, which spans more than 500 acres and is built to support large-scale AI and high-performance computing workloads. Initial operations at Delta Forge 1 are expected to begin in mid-2027, Applied Digital said.
The new tenant becomes Applied Digital's second U.S.-based investment-grade hyperscale customer across its portfolio, and the company's third hyperscale tenant overall. With the addition, more than 50% of Applied Digital's total contracted revenue is now backed by investment-grade customers, the company said.
"We now have two U.S. based investment-grade hyperscalers across our portfolio, marking an important step in the continued diversification of our customer base and strengthening the overall quality and visibility of our contracted revenue," CEO Wes Cummins $CMI said in a statement.
Shares of Applied Digital climbed more than 12% after the news broke, Reuters reported.
Separately, Applied Digital said it expects to enter into two credit facilities: an up to $300 million senior secured bridge facility to fund continued development of a 150 MW building at its Polaris Forge 1 campus, and an up to $300 million senior secured revolving credit facility for development activities across its platform and general working capital needs. Both are expected to be provided by a syndicate of bank lenders and close promptly, the company said.
The lease reflects a broader race among large technology firms to lock in data center space equipped to handle the power and thermal demands of AI infrastructure.