DealsMay 20, 2026, 04:17 PM
Applied Digital Secures $7.5B AI Factory Lease with Hyperscaler
AI Summary
Applied Digital announced a long-term lease agreement for its fourth AI Factory campus, Polaris Forge 3, with a U.S. based high investment-grade hyperscaler. The 15-year take-or-pay lease is valued at approximately $7.5 billion in base-term contracted revenue, with a potential value of up to $18.2 billion if all options are exercised. This 300 MW facility, purpose-built for large-scale AI training and inference workloads, increases Applied Digital's total contracted lease revenue to $31 billion across four campuses, or $73 billion with all renewal options. Initial operations at Polaris Forge 3 are expected to begin in August 2027.
Key Highlights
- Applied Digital secured a 15-year take-or-pay lease for its Polaris Forge 3 AI Factory campus.
- The lease is valued at approximately $7.5 billion in base-term contracted revenue.
- The potential value could reach up to $18.2 billion if all renewal options are exercised.
- Polaris Forge 3 is designed to deliver 300 MW of critical IT load for AI workloads.
- This agreement brings Applied Digital's total contracted lease revenue to $31 billion across four AI Factory campuses.
- Total contracted capacity across four AI Factory campuses now reaches 1,200 MW of critical IT load.
- Approximately 65% of contracted revenue is backed by U.S. based investment-grade hyperscalers.
- Initial operations at Polaris Forge 3 are anticipated to commence in August 2027.
Price Impact
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