Applied Digital Corporation stock jumped nearly 9% in after-hours trading on Monday following the company's announcement of a 210 megawatt, 15-year lease agreement with a U.S.-based investment-grade hyperscaler at its Delta Forge 2 AI campus. The deal adds approximately $5.2 billion in base-term contracted revenue to Applied Digital's portfolio. The lease agreement marks the company's fifth AI Factory campus and expands its total contracted portfolio to around $36 billion across five campuses, with about 70% of contracted revenue now backed by investment-grade hyperscalers.
APLD shares closed up 3.34% in the regular session on Monday before extending gains post-market.
Applied Digital Signs 210 MW Lease at Delta Forge 2
The agreement covers 210 MW of critical IT load under a 15-year take-or-pay structure with renewal options. The base-term contract translates to around $5.2 billion in contracted revenue. If all renewal options are exercised over a 30-year period, the total value rises to approximately $12.7 billion.
APLD CEO Wes Cummins said the deal reinforces Applied Digital's approach of scaling a standardized operating model across multiple sites rather than building isolated data centers. "Two years ago, we made a deliberate decision to build a company that scales, not just builds data centers," Cummins said. "We call it our franchise model—a core team of design, construction, and operations professionals replicated across every campus, in every market."
Contracted Portfolio Reaches $36 Billion Across Five Campuses
With the latest agreement, Applied Digital's contracted portfolio spans five AI Factory campuses, covering 1.4 GW of critical IT load and about 2.15 GW of grid-connected utility power. Total contracted base-term lease revenue stands at around $36 billion, rising to about $86 billion if all renewal options are exercised.
The company said about 70% of contracted revenue is now backed by U.S.-based investment-grade hyperscalers.
Delta Forge 2 Operations Expected in Q1 2028
Applied Digital said its site selection strategy focuses on regions where large-scale infrastructure investment can drive long-term economic impact, including job creation and expanded tax bases. The Delta Forge 2 campus is located in a new southern state.
The campus is expected to support local employment and construction activity and will feature the company's proprietary waterless cooling and high-density infrastructure designed for AI workloads. Initial operations are expected to begin in Q1 2028.
Retail Sentiment Turns Bullish on Stocktwits
Stocktwits retail sentiment on APLD improved to 'bullish' on Monday from 'bearish' a day ago. APLD's message volume rose 29% over the past seven days and surged 166% in the last 30 days.
One retail trader on Stocktwits questioned the customer mix across Applied Digital's campuses, asking whether it is the same hyperscaler at multiple sites or a different split. Other traders posted upside price targets, with one stating the stock "should be at 60" and another predicting "$70 by Thursday," while shares were trading around $45.
APLD stock is up over 180% in the past 12 months.
FAQ
What did Applied Digital announce on Monday?
Applied Digital announced a 210 megawatt, 15-year lease agreement with a U.S.-based investment-grade hyperscaler at its Delta Forge 2 AI campus. The deal adds approximately $5.2 billion in base-term contracted revenue.
How large is Applied Digital's total contracted portfolio?
Applied Digital's contracted portfolio now spans five AI Factory campuses covering 1.4 GW of critical IT load. Total contracted base-term lease revenue stands at around $36 billion, rising to about $86 billion if all renewal options are exercised.
When will Delta Forge 2 begin operations?
Initial operations at the Delta Forge 2 campus are expected to begin in Q1 2028.
