Applied Digital secures multi-billion-dollar AI data center leases from major customers.

Applied Digital (NASDAQ: APLD) announced two major hyperscaler data center leases within five weeks. On June 8, 2026, the company signed a 15-year lease for Delta Forge 2, a new 210 MW AI Factory campus in an undisclosed southern U.S. state, worth $5.2 billion in base-term contracted revenue from a U.S. investment-grade hyperscaler. Earlier, on May 20, 2026, Applied Digital signed a separate 15-year lease for Polaris Forge 3, a 300 MW campus designed to support approximately 430 MW of grid-connected utility power, valued at $7.5 billion in base-term contracted revenue and up to $18.2 billion with options exercised. Polaris Forge 3 is with the same hyperscaler that previously signed at Delta Forge 1.

With all five campuses now operational or contracted—Delta Forge 1, Delta Forge 2, Polaris Forge 1, Polaris Forge 2, and Polaris Forge 3—Applied Digital's total contracted base-term revenue reaches approximately $36 billion, rising to $86 billion if renewal options are exercised. About 70% of contracted revenue is backed by investment-grade hyperscalers. The combined portfolio exceeds 1 GW of contracted capacity.

In equity analysis, Applied Digital trades at approximately 7x forward 2029 EV/sales, a discount to traditional colocation REITs Equinix (9.35x) and Digital Realty (9.53x), framing a valuation gap for AI-native infrastructure providers versus established players.

Long-duration, fixed-price hyperscaler leases create highly predictable revenue streams for data-center operators. These contracts shift counterparty risk and utilization uncertainty to the hyperscaler, reducing operator financial risk while constraining upside if spot-market rates rise. Purpose-built high-density campuses and dedicated power agreements remain key differentiators in securing this class of lease.