Applied Digital Expands AI Factory Model with 210 MW Lease at Delta Forge 2

Event summary

  • Applied Digital has signed a 15-year lease for 210 MW of critical IT load at Delta Forge 2, its fifth AI Factory campus.
  • The deal with a U.S. investment-grade hyperscaler represents $5.2 billion in base-term revenue, rising to $12.7 billion with renewal options.
  • Total contracted revenue across five campuses now stands at $36 billion ($86 billion with renewals), with 1.4 GW of critical IT load.
  • Delta Forge 2, set to begin operations in Q1 2028, will use Applied Digital’s proprietary waterless cooling technology.

The big picture

Applied Digital’s franchise model continues to gain traction, validating its approach of replicating design, construction, and operations teams across campuses. The Delta Forge 2 lease underscores the growing demand for AI-optimized data centers, particularly in underserved communities where Applied Digital emphasizes economic impact. With $36 billion in contracted revenue, the company is positioning itself as a key player in the AI infrastructure boom, though its reliance on a handful of hyperscalers remains a strategic vulnerability.

What we're watching

Hyperscaler Dependence
Whether Applied Digital can sustain growth with 70% of revenue tied to U.S. investment-grade hyperscalers.
Geographic Expansion
The pace at which Applied Digital integrates new southern geographies into its franchise model.
Renewal Risk
How the company mitigates exposure if hyperscalers opt not to renew long-term leases.