Applied Digital signs $5.2 billion AI data center lease with U.S. hyperscaler

June 8 (Reuters) – Applied Digital has signed a 15-year lease with a U.S.-based hyperscaler at its Delta Forge 2 site which is expected to generate about $5.2 billion in revenue over the period, sending the company’s shares up 8.7% in extended trading.

Major technology companies are raising their spending on data centers to support powerful artificial intelligence models, boosting demand for electricity, computing capacity and specialized facilities.

About 70% of Applied Digital’s contracted revenue is now backed by U.S.-based investment-grade hyperscalers, the company said on Monday.

The new agreement covers 210 megawatts of computing capacity at Delta Forge 2, Applied Digital’s new AI Factory campus, under a take-or-pay lease structure.

The company did not give more details on its new customer, but said the deal marked its third long-term lease with the same investment-grade hyperscaler.

If all renewal options are exercised, the contract could generate about $12.7 billion in revenue over a 30-year period.

Applied Digital’s contracted portfolio now spans five campuses, representing 1.4 gigawatts of critical IT load and about 2.15 gigawatts of grid-connected utility power.

The company said its contracted base-term lease revenue has increased to about $36 billion and would rise to roughly $86 billion if all renewal options are exercised.

Delta Forge 2 will use Applied Digital’s waterless cooling technology and high-power density infrastructure designed for AI workloads. Initial operations at the campus are expected to begin in the first quarter of 2028.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)