Applied Digital has signed a 15-year lease with a US-based hyperscaler at its Delta Forge 2 site which is expected to generate about $5.2 billion in revenue over the period, sending the company's shares up 8.7% in extended trading.
Major technology companies are raising their spending on data centers to support powerful artificial intelligence models, boosting demand for electricity, computing capacity and specialized facilities.
About 70% of Applied Digital's contracted revenue is now backed by U.S.-based investment-grade hyperscalers, the company said on Monday.
The new agreement covers 210 megawatts of computing capacity at Delta Forge 2, Applied Digital's new AI Factory campus, under a take-or-pay lease structure.
The company did not give more details on its new customer, but said the deal marked its third long-term lease with the same investment-grade hyperscaler.
If all renewal options are exercised, the contract could generate about $12.7 billion in revenue over a 30-year period.
Applied Digital's contracted portfolio now spans five campuses, representing 1.4 gigawatts of critical IT load and about 2.15 gigawatts of grid-connected utility power.
The company said its contracted base-term lease revenue has increased to about $36 billion and would rise to roughly $86 billion if all renewal options are exercised.
Delta Forge 2 will use Applied Digital's waterless cooling technology and high-power density infrastructure designed for AI workloads. Initial operations at the campus are expected to begin in the first quarter of 2028.
