Applied Digital lands a $7.5B AI tenant

A very expensive roommate

Applied Digital just found a new tenant for its Delta Forge 1 AI Factory campus, and this isn’t your average “we’ll split utilities” situation. The company said the 15-year lease is worth about $7.5 billion and covers 300 megawatts of critical IT load for a U.S.-based, investment-grade hyperscaler.

Why Wall Street cares

For investors, the big deal here is visibility. Applied Digital says the lease pushes total contracted revenue above $23 billion and gives it a third hyperscale tenant across its AI Factory portfolio. Translation: more of the business is becoming locked in, which is exactly what data-center bulls want to see when they’re trying to judge whether this whole AI infrastructure boom is real or just a very expensive group chat.

The fine print still matters

There’s still plenty of capital-hungry reality lurking behind the headline sparkle:

• The company says operations at Delta Forge 1 should begin in mid-2027.
• It also plans to arrange up to $300 million in a senior secured bridge facility for Polaris Forge 1.
• On top of that, it’s seeking an additional up to $300 million revolving credit facility.

So yes, the revenue pipeline looks juicier. But Applied Digital is still in the part of the movie where the hero is building the spaceship, not flying it yet.

Big picture

This is another reminder that AI infrastructure names can move fast when a credible customer signs on the dotted line. If Applied Digital keeps turning its campuses into long-term cash machines, the stock gets a sturdier story — not just a hype cycle with better branding.