TLDR
- Applied Digital secured a $5 billion, 15-year lease with a hyperscaler for 200 MW at its North Dakota Polaris Forge 2 campus
- Total leased capacity across North Dakota facilities now reaches 600 MW with two major hyperscalers
- Hyperscaler obtained first right of refusal for 800 MW additional capacity at the 1-gigawatt campus
- Initial 200 MW deployment begins in 2026 with full capacity expected by 2027
- APLD stock climbed 7% following the announcement
Applied Digital stock rose 7% on Wednesday after the company announced a major lease deal. The agreement involves a U.S.-based investment grade hyperscaler at the Polaris Forge 2 campus in North Dakota.
Applied Digital Corporation, APLD
The lease spans approximately 15 years and represents $5 billion in contracted revenue. It covers 200 megawatts of critical IT load for artificial intelligence and high-performance computing.
This brings Applied Digital’s total North Dakota capacity to 600 MW. The company now has agreements with two major global hyperscalers across its Polaris Forge facilities.
The hyperscaler secured a first right of refusal for 800 MW more. This represents the full expansion potential of the 1-gigawatt Polaris Forge 2 campus.
Deployment Timeline and Campus Details
The initial 200 MW will deploy in two phases. Buildings start coming online in 2026.
Full capacity should be reached by 2027. The campus covers over 900 acres in North Dakota.
Applied Digital designed the facility for efficiency. The projected power usage effectiveness sits at 1.18.
Water consumption approaches near-zero levels. These specs meet modern data center sustainability requirements.
Chairman and CEO Wes Cummins addressed the company’s competitive edge. “What sets us apart isn’t just the size of our pipeline – it’s how fast we can deliver,” he stated.
Cummins pointed to execution as the industry’s real bottleneck. He said Applied Digital proves large-scale data centers can be designed, financed, and launched faster than competitors expect.
Recent Deal Activity
Applied Digital has been active in securing major agreements. Earlier this year, the company finalized a 150 MW lease with CoreWeave at Polaris Forge 1.
The company also entered a $5 billion AI infrastructure partnership with Macquarie Asset Management. These deals support Applied Digital’s expansion strategy.
APLD stock has surged over 325% year-to-date. Investors are backing the company’s data center growth plans.
Premarket trading showed shares up 4% initially. The gain extended to 7% during regular trading.
Market Positioning
Developers are racing to secure AI compute infrastructure. Growing demand for AI capabilities drives this competition.
Applied Digital supplies capacity through its expanding campus network. The North Dakota facilities serve as a central hub.
The state offers advantages for large-scale data center operations. Applied Digital leverages these benefits for its expansion.
The unnamed U.S. hyperscaler represents a major tenant. The 15-year commitment provides long-term revenue visibility.
Applied Digital’s total pipeline continues growing. The company focuses on bringing capacity online quickly.
The Polaris Forge 2 deal marks one of Applied Digital’s largest agreements. The $5 billion value reflects strong demand for AI infrastructure.
The company’s execution speed remains a key differentiator. Applied Digital aims to outpace competitors in delivery timelines.
The 600 MW currently leased across North Dakota represents substantial capacity. The potential for 800 MW more at Polaris Forge 2 offers room for growth.
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