DALLAS — Applied Digital has announced a major long-term lease agreement with a U.S.-based investment-grade hyperscaler for its Delta Forge 1 AI Factory campus, marking a significant milestone in the company’s data center expansion strategy.
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The deal, disclosed April 23, represents approximately $7.5 billion in total contracted value over an estimated 15-year term. The lease covers 300 megawatts of critical IT load and is designed to support artificial intelligence and high-performance computing infrastructure at scale.
The agreement brings Applied Digital’s total contracted lease revenue to more than $23 billion and introduces its third hyperscale tenant. Company officials said more than half of that revenue is now backed by investment-grade customers, reinforcing the financial stability of its growing portfolio.
"We remain focused on delivering operational AI capacity at scale,” said Wes Cummins, chairman and CEO of Applied Digital. “With this agreement, 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. Our priority remains execution –– bringing capacity online on schedule and operating it with discipline over the long term.”
Delta Forge 1 is the company’s newest AI-focused campus and spans more than 500 acres. The facility is purpose-built to handle large-scale AI workloads with high-density power delivery systems, advanced cooling infrastructure and optimized operational design.
The campus follows Applied Digital’s repeatable “AI Factory” model, which is engineered to support both AI training and inference workloads in high-density environments. Initial operations at the site are expected to begin in mid-2027.
The development reflects the accelerating demand for hyperscale infrastructure driven by AI and cloud computing growth. By focusing on scalable and energy-efficient solutions, Applied Digital aims to position itself as a key player in the next generation of digital infrastructure.
Alongside the lease announcement, Applied Digital outlined plans to secure additional financing to support ongoing construction and development across its platform.
The company expects to enter into a senior secured bridge facility of up to $300 million to fund continued development of Building 3 at its Polaris Forge 1 campus. In addition, it anticipates closing an up to $300 million senior secured revolving credit facility to support pre-lease and post-lease development activities, as well as general corporate needs.
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Both financing arrangements are expected to be provided by a syndicate of bank lenders and structured under customary market terms. The company said the facilities are expected to close promptly.
Applied Digital, founded in 2021 and headquartered in Dallas, designs, builds and operates high-performance data centers tailored for artificial intelligence, cloud computing, networking and blockchain applications. The firm has emphasized sustainable engineering practices, including proprietary waterless cooling systems and rapid deployment capabilities, to meet rising infrastructure demands.
The company was recently named Best Data Center in the Americas 2025 by Datacloud, highlighting its growing influence in the sector.
Originally reported by Applied Digital.
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