Applied Digital (NASDAQ: APLD) Stock Surges On 210 MW Hyperscale Lease Deal Worth Billions In Long-Term Revenue
Applied Digital (NASDAQ: APLD) shares rose 7.8% after it announced a 15-year take-or-pay lease for 210 MW of IT load at its Delta Forge 2 AI campus with a U.S. investment-grade hyperscaler, according to the company. The deal raises total contracted base-term lease revenue to about $36.0B across five campuses. The company also closed $1.59B senior secured notes and secured a $350M revolving credit facility. Analysts project 2029 revenue of $2.6B and earnings of $467.2M.
New long-duration AI data-center lease contract materially increases revenue visibility but heightens customer concentration and execution risk.
Applied Digital announced a 15-year, take-or-pay 210 MW hyperscale lease at Delta Forge 2, lifting contracted base-term lease revenue to ~$36B.
Near-term upside bias consistent with the reported +7.8% surge, with follow-through dependent on financing/lease utilization and margin trajectory.
Background
Applied Digital is pivoting from crypto-exposed computing toward AI data-center leases, positioning hyperscaler contracts as more predictable cash-flow drivers.
Why it matters
The disclosed 210 MW, 15-year take-or-pay lease is a concrete step-up in contracted revenue visibility, while the simultaneous $1.59B notes offering and $350M revolver highlight ongoing reliance on debt to fund expansion.
Market relevance
A large, long-duration hyperscaler lease plus new debt financing is a direct catalyst for APLD’s revenue visibility and leverage narrative.
Market effects
Reinforces the AI data-center lease model (long-duration, take-or-pay) as a funding and valuation support narrative for hyperscaler-linked infrastructure plays.
No specific regional demand or policy driver cited beyond U.S. hyperscaler customer framing.
Limited; the deal is U.S.-centric and does not cite cross-border expansion or global regulatory changes.
Alternative perspectives
The take-or-pay structure improves revenue visibility, but heavy debt funding and hyperscaler concentration could still pressure equity if build-out costs or utilization assumptions disappoint.
Bond proceeds and the revolver increase leverage; traders should watch for any disclosures on customer identity/credit terms, construction milestones, and how lease economics translate into free cash flow.
Key entities
- companyApplied Digital Corporation
Announced the Delta Forge 2 210 MW hyperscale lease and related debt/revolver financing.
- facilityDelta Forge 2 AI Factory campus
Site of the new 15-year take-or-pay 210 MW lease agreement.
