Applied Digital signs $7.5 billion AI data center lease with US hyperscaler

Applied Digital has signed a $7.5 billion long-term lease agreement with an unnamed US-based hyperscaler, reinforcing the accelerating demand for AI-focused data center infrastructure.

The 15-year deal covers 300 megawatts of capacity at the company’s Delta Forge 1 campus, a large-scale facility designed to support high-performance computing and AI workloads.

The agreement positions Applied Digital as a growing infrastructure provider in the AI ecosystem, with total contracted lease revenue now exceeding $23 billion. The new tenant also becomes the company’s second investment-grade hyperscale customer, indicating increasing reliance on large, credit-backed clients.

The Delta Forge 1 campus, spread across more than 500 acres, is being built with high-density power and cooling capabilities tailored for AI training and inference workloads. Initial operations are expected to begin in mid-2027.

The deal comes amid a broader surge in AI infrastructure investment, as hyperscalers continue to secure capacity to support growing demand for generative AI, machine learning, and large-scale data processing. Companies such as Amazon, Microsoft, and Google are collectively investing billions in data center expansion to meet compute requirements.

Following the announcement, Applied Digital’s shares rose sharply, reflecting strong investor sentiment around AI infrastructure providers benefiting from the current investment cycle.

The development highlights a structural shift in enterprise technology spending, where access to compute capacity and energy-efficient infrastructure is becoming a key competitive factor in scaling AI capabilities.

 

Source and Credits: Reuters