What happened
Applied Digital (NASDAQ: APLD) announced two major hyperscaler data center leases in the past five weeks. On June 8, 2026, the company signed a 15-year lease for Delta Forge 2, a new 210 MW AI Factory campus in an undisclosed southern U.S. state, with a U.S. investment-grade hyperscaler worth $5.2 billion in base-term contracted revenue, per company press releases. Earlier, on May 20, 2026, Applied Digital signed a separate 15-year lease for Polaris Forge 3, a 300 MW campus designed to support approximately 430 MW of grid-connected utility power, valued at $7.5 billion in base-term contracted revenue and up to $18.2 billion with options exercised, per GlobeNewswire. Polaris Forge 3 is the same hyperscaler that previously signed at Delta Forge 1.
Portfolio summary
With all five campuses - Delta Forge 1, Delta Forge 2, Polaris Forge 1, Polaris Forge 2, and Polaris Forge 3 - Applied Digital's total contracted base-term revenue is approximately $36 billion, rising to $86 billion if renewal options are exercised. About 70% of contracted revenue is backed by investment-grade hyperscalers, per company disclosures. The combined portfolio exceeds 1 GW of contracted capacity, per the company.
Market context
Insider Monkey, in analysis republished via Yahoo Finance, notes Applied Digital trades at approximately 7x forward 2029 EV/sales, a discount to Equinix (9.35x) and Digital Realty (9.53x). The article frames this as a valuation gap for AI-native infrastructure versus traditional colocation REITs.
Technical context
Long-duration, fixed-price hyperscaler leases create highly predictable revenue streams for data-center operators. For practitioners modelling AI infrastructure capex, this type of contract shifts counterparty risk and utilization uncertainty to the hyperscaler, reducing operator financial risk while constraining the operator's upside if spot-market rates rise. Purpose-built high-density campuses and dedicated power agreements remain key differentiators in winning this class of lease.
What to watch
Regulatory approvals and construction timelines for Polaris Forge 3 and Delta Forge 2, identity of the hyperscaler counterparties if disclosed, and whether Applied Digital uses lease-backed revenue to accelerate additional campus announcements.
Key Points
- 1Applied Digital signed a **$5.2 billion** 15-year lease for Delta Forge 2 (210 MW) and a **$7.5 billion** 15-year lease for Polaris Forge 3 (300 MW), both with investment-grade U.S. hyperscalers.
- 2Five AI Factory campuses now total approximately **$36 billion** in contracted base-term revenue (~$86 billion with options), with **70%** backed by investment-grade counterparties.
- 3Long-duration fixed-price hyperscaler leases shift utilization risk to the hyperscaler and create predictable revenue but cap operator upside if spot rates rise - a key trade-off for AI infra practitioners.
Scoring Rationale
Applied Digital's back-to-back multi-billion hyperscaler leases ($7.5B and $5.2B) and a $36B total contracted portfolio are notable for AI infrastructure practitioners tracking data center capacity and long-term capital commitments. Score adjusted from 6.8 to 6.5 since the immediate news angle is via a stock-picks analysis article rather than direct primary reporting of the leases, which were announced in May and June 2026.
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