Applied Digital Signs Another $7.5 Billion Mega Deal, Stock Price Soars by Over 20%

Applied Digital announced on Thursday a new lease agreement with an undisclosed hyperscale cloud service provider for its fourth data center campus, Polaris Forge 3, which led to a significant surge in the company's stock price, increasing by more than 20% on the same day.

This lease has a term of 15 years and covers 300 megawatts of critical IT load, specifically designed for AI model training and inference workloads, with a contract value of around $7.5 billion. Notably, the contracting party is the same hyperscale customer who invested $7.5 billion in April for 300 megawatts of capacity at the Delta Forge 1 project.

The Polaris Forge 3 campus spans over 600 acres and is equipped with Applied Digital’s proprietary waterless cooling technology and high-density power supply systems, expected to become operational in August 2027.

CEO Wes Cummins stated that this project is a direct extension of the company's "proven, replicable AI factory model," aiming to provide large-scale capacity to customers with the highest global computing power demands.

From a broader perspective, the current group of hyperscale cloud service providers, including Amazon Web Services, Microsoft Azure, Google Cloud, and Oracle, plan to spend a combined total of $725 billion on capital expenditures for the year 2026 alone, providing Applied Digital with a vast market opportunity.

Currently, the company's total contracted lease revenue across its four campuses has reached $31 billion, which could climb up to $73 billion if customers opt for contract renewals under existing terms. Cummins also disclosed that the company is actively marketing over 1.7 gigawatts of connected power resources, indicating that the expansion pace is not slowing down.