APLD
Another hyperscaler, another check mark
Applied Digital says it signed a new long-term lease agreement with an undisclosed U.S.-based hyperscaler for Delta Forge 2, a new AI Factory campus in the southern U.S. The deal covers 210 MW of IT load and uses a 15-year take-or-pay structure, which is Wall Street speak for: the customer is on the hook whether it fully uses the space or not.
Why investors care
This isn’t just “we found a tenant” news. Applied Digital says the arrangement could bring in $5.2 billion in base revenue, and up to $12.7 billion over 30 years if all the optional extensions are exercised. That’s the kind of visibility data-center investors drool over because it turns a capital-intensive buildout into something a little more buffet, a little less roulette.
The plot thickens
This is Applied Digital’s third long-term lease with the same hyperscaler, which is a pretty loud vote of confidence even if the customer’s name is still under wraps. The company also says Delta Forge 2 will use waterless cooling and high-power-density infrastructure, because apparently ordinary air-conditioning is so last decade when you’re training giant AI models.
Big picture
The campus is expected to be ready for initial operations in Q1 2028, so this is more “future revenue machine” than instant gratification. But in the AI infrastructure game, locking in demand early is half the battle — and APLD just gave bulls another reason to keep the fireworks going.