Applied Digital locks $5.2 billion AI data center lease and plans $1.59 billion debt raise
6 Sources
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Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler
June 8 (Reuters) - Applied Digital (APLD.O), opens new tab has signed a 15-year lease with a U.S.-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
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Applied Digital signs $5.2 billion AI data center lease with US hyperscaler
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. Applied Digital has signed a 15-year lease with a US-based hyperscaler at its Delta Forge 2
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Applied Digital subsidiary plans $1.59 billion notes offering By Investing.com
DALLAS - Applied Digital Corporation (NASDAQ:APLD) announced today that its subsidiary APLD ComputeCo 3 LLC intends to offer $1.59 billion in senior secured notes due 2031, subject to market conditions, according to a press release statement. The notes will be offered privately to qualified
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Applied Digital Prices $1.59 Billion Notes Offering to Fund North Dakota AI Data Center
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and
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Applied Digital Plans $1.59 Billion Debt Offering to Fund AI Data Center Expansion
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and
[6]
Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and
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Applied Digital secured a massive 15-year, $5.2 billion AI data center lease with an unnamed U.S. hyperscaler for 210 megawatts at its Delta Forge 2 campus. The deal could generate $12.7 billion over 30 years if renewal options are exercised. Separately, the company announced a $1.59 billion notes offering to fund expansion at its Polaris Forge 1 facility in North Dakota.
Applied Digital Secures Massive AI Data Center Lease Worth $5.2 Billion
Applied Digital has landed a 15-year AI data center lease with a U.S. hyperscaler that will generate approximately $5.2 billion in revenue, marking a significant expansion in the company's portfolio of data centers for AI
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. The agreement covers 210 megawatts of computing capacity at Delta Forge 2, the company's new AI Factory campus, under a take-or-pay lease structure. News of the deal sent Applied Digital shares up 8.7% in extended trading, reflecting investor confidence in the company's ability to capitalize on surging demand for AI infrastructure1
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Source: Reuters
While Applied Digital did not disclose the identity of its customer, the company revealed this marks its third long-term lease with the same investment-grade hyperscaler
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. If all renewal options are exercised, the contract could generate about $12.7 billion in contracted revenue over a 30-year period, demonstrating the long-term value of hosting AI workloads . About 70% of Applied Digital's contracted revenue is now backed by U.S.-based investment-grade hyperscalers, providing a stable foundation as major technology companies raise their spending on data centers to support powerful AI models2
.Delta Forge 2 to Feature Advanced Infrastructure for AI Workloads
Delta Forge 2 will utilize Applied Digital's waterless cooling technology and high-power density infrastructure specifically designed for AI workloads, addressing the intensive power and cooling requirements of modern AI models . Initial operations at the campus are expected to begin in the first quarter of 2028, positioning the facility to meet anticipated demand for high-performance computing as AI applications continue to proliferate
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Source: ET
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
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. The company's contracted base-term lease revenue has increased to about $36 billion and would rise to roughly $86 billion if all renewal options are exercised across its portfolio .Related Stories
AI Data Center Expansion Fueled by $1.59 Billion Notes Offering
In a separate move to fund AI data center expansion, Applied Digital announced that its subsidiary APLD ComputeCo 3 LLC intends to offer $1.59 billion in senior secured notes due 2031
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. The notes offering will be offered privately to qualified institutional buyers and is subject to market conditions. The company plans to use the net proceeds to fund construction of 150 megawatts of critical IT load at the fourth building at Polaris Forge 1, its data center campus in Ellendale, North Dakota3
.The proceeds will also repay the principal balance and accrued interest under a bridge loan facility with Goldman Sachs Bank USA as administrative agent, fund debt service reserves, and cover transaction expenses
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. Applied Digital designs, builds, and operates data centers for artificial intelligence, cloud, networking, and blockchain workloads, with operations spanning both crypto mining and high-performance computing segments4
. The company's aggressive expansion reflects the broader industry trend as demand for electricity, computing capacity, and specialized facilities continues to accelerate alongside the growth of AI models and applications.References
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