Applied Digital Corporation has announced a new long-term lease agreement that pushes its total contracted capacity across AI data center campuses beyond the one-gigawatt mark, a threshold the Dallas-based company described as a significant milestone in its expansion as a large-scale AI infrastructure provider.

A Fourth Campus and a Familiar Partner

The agreement covers Polaris Forge 3, Applied Digital's fourth AI Factory campus, located in what the company described only as a northern state.

The lease was signed with the same U.S.-based high investment-grade hyperscaler that previously entered into a long-term agreement at Applied Digital's Delta Forge 1 campus in April 2026.

The identity of the hyperscaler was not disclosed in the announcement. The new lease carries a base-term contracted value of approximately USD 7.5 billion over a 15-year take-or-pay term.

If all renewal options are exercised in accordance with their terms, the total potential value of the Polaris Forge 3 agreements reaches approximately USD 18.2 billion.

Polaris Forge 3 is designed to deliver 300 megawatts of critical IT load, supported by approximately 430 megawatts of grid-connected utility power.

The campus spans more than 600 acres and is purpose-built for high-density AI training and inference workloads.

Applied Digital said it incorporates the company's proprietary waterless cooling technology, high-density power delivery, and advanced liquid-cooling architecture. Initial operations at Polaris Forge 3 are anticipated to commence in August 2027.

Portfolio Now Spans Four Campuses and 1,200 MW

With the addition of Polaris Forge 3, Applied Digital's total contracted capacity across its four AI Factory campuses now stands at 1,200 megawatts of critical IT load on a net basis, equivalent to 1.2 gigawatts, and approximately 1,670 megawatts of utility power on a gross basis.

The four campuses include Polaris Forge 1, Polaris Forge 2, Delta Forge 1, and the newly announced Polaris Forge 3.

All four operate under what Applied Digital refers to as its AI Factory model, a standardized campus design framework intended to support repeatable large-scale AI deployments.

Total contracted lease revenue across the four campuses now stands at USD 31 billion over the respective base terms of the agreements.

If all renewal options at each campus are exercised, the aggregate potential contracted value reaches USD 73 billion.

The company stated that approximately 65 percent of its contracted revenue is backed by U.S.-based investment-grade hyperscalers.

Expanding the Relationship With a Key Customer

Applied Digital characterized the Polaris Forge 3 agreement as the second long-term lease signed with the same unnamed high investment-grade hyperscaler, the first having been executed at Delta Forge 1.

The company said the repeat engagement reflects the strategic relationship that has developed between the two parties.

Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, said the new lease was a direct extension of what the company has demonstrated can be delivered through its AI Factory approach.

"This second 300 MW lease with the same U.S.-based high investment-grade hyperscaler we partnered with at Delta Forge 1 reflects the confidence we've built through disciplined execution and our ability to consistently advance large-scale AI infrastructure projects," Cummins said in a statement accompanying the announcement.

Cummins added that while securing leases representing 1.2 gigawatts of contracted capacity in eleven months represented a significant achievement, the company is actively marketing more than 1.7 gigawatts of grid-connected utility power across both recently added sites and existing locations in its portfolio.

Revenue Visibility and Contract Structure

The take-or-pay structure of the lease agreements means the hyperscaler customer is obligated to make payments regardless of whether the capacity is fully utilized, providing Applied Digital with a degree of revenue certainty over the life of the contracts.

The 15-year base terms on the agreements at Polaris Forge 3 mirror the structure of prior leases in the company's portfolio.

Applied Digital noted in its announcement that the USD 31 billion in total contracted baseline revenue and the USD 73 billion figure, including all renewal options together, represent what it believes is strong long-term revenue visibility for its portfolio of AI Factory campuses.

Company Background and Recognition

Applied Digital was founded in 2021 and is headquartered in Dallas, Texas. The company designs, builds, and operates data centers serving artificial intelligence, cloud, networking, and blockchain workloads. It was named Best Data Center in the Americas 2025 by Datacloud.

The company trades on the Nasdaq exchange under the ticker symbol APLD and has described its mission as combining hyperscale expertise with proprietary cooling technology and rapid deployment capabilities, while also creating economic opportunities in what it characterizes as underserved communities through its Polaris Forge AI Factory model.