On May 20, 2026, Applied Digital Inc. (NASDAQ: APLD) announced a significant milestone in its growth trajectory, revealing that it has surpassed 1 gigawatt (GW) of contracted capacity across its data center campuses. This achievement comes on the heels of a new long-term lease agreement with a U.S.-based high investment-grade hyperscaler for its fourth AI Factory campus, Polaris Forge 3. The lease is designed to deliver a robust 300 megawatts (MW) of critical IT load, further solidifying Applied Digital’s standing as a leader in the data center sector tailored for artificial intelligence (AI) and high-performance computing (HPC) workloads.

2. Key Financial Highlights

The new lease agreement includes several notable financial details:

Duration and Value: The lease is structured as a 15-year take-or-pay contract, valued at approximately $7.5 billion in base-term revenue. If all options are exercised, the total potential value of the contract could reach an impressive $18.2 billion.

Total Contracted Revenue: With this new agreement, Applied Digital's total contracted lease revenue now stands at $31 billion across its four AI Factory campuses. Should all renewal options be exercised per the terms, this could escalate to $73 billion.

Investment-Grade Backing: Approximately 65% of the contracted revenue is backed by U.S.-based investment-grade hyperscalers, providing a solid foundation for revenue stability.

3. Expanding Capacity and Infrastructure

Polaris Forge 3 will add a crucial 300 MW of capacity, which is specifically engineered to meet the demands of large-scale AI training and inference workloads. This new campus will complement the existing Delta Forge 1 facility, where the same hyperscaler previously signed a lease, showcasing the ongoing partnership and trust between the two entities.

Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, expressed confidence in the company's strategic direction, stating, “This second 300 MW lease reflects the confidence we’ve built through disciplined execution and our ability to consistently advance large-scale AI infrastructure projects.” He emphasized the importance of operational reliability in maintaining strong relationships with blue-chip customers.

4. Innovative Technology and Design

Polaris Forge 3 will span over 600 acres and is designed from the ground up to support high-density AI workloads. Notably, the campus will incorporate Applied Digital's proprietary waterless cooling technology and advanced liquid-cooling architecture. These innovations are critical for managing the compute densities inherent in next-generation AI infrastructure, ensuring efficient and reliable operations.

5. Future Prospects

The announcement also highlights the strong momentum Applied Digital is experiencing. Over the past eleven months, the company has executed leases representing 1.2 GW of capacity. Currently, they are actively marketing an additional 1.7 GW of grid-connected utility power across recently added and existing sites.

As the demand for AI and HPC capabilities continues to rise, Applied Digital is well-positioned to capitalize on the growing market, driven by its disciplined approach and innovative technologies. Initial operations at Polaris Forge 3 are anticipated to commence in August 2027, marking another step forward in Applied Digital's ambitious growth strategy.

6. Conclusion

Applied Digital's latest lease agreement underscores the company’s commitment to expanding its footprint in the data center market, particularly in the realm of artificial intelligence and high-performance computing. With a solid financial foundation and innovative infrastructure, Applied Digital is not only meeting the demands of today but is also strategically positioning itself for future growth in a rapidly evolving technological landscape.

Original press release