Shares of Applied Digital Corp (APLD) jumped more than 6% in after-hours trading Wednesday after the company announced it had signed another long-term lease agreement with a hyperscaler client. This is the same undisclosed hyperscaler that previously signed a deal at Applied Digital's Delta Forge 1 facility.
The new agreement is for Polaris Forge 3, Applied Digital's fourth AI factory campus. Located in a Northern state, the campus will deliver 300 megawatts of critical IT load designed for large-scale AI training and inference workloads. With this deal, Applied Digital has now surpassed 1 gigawatt of total contracted capacity.
“Polaris Forge 3 is a direct extension of what we've proven works: a disciplined, repeatable AI Factory model that delivers large-scale capacity to the world's most demanding compute customers,” said Wes Cummins, chairman and CEO of Applied Digital. “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.”
The deal involves 15-year take-or-pay leases valued at approximately $7.5 billion in base contracted revenue. If all options are exercised, that figure could expand to $18.2 billion. Applied Digital said the agreement brings its total contracted lease revenue up to $31 billion.
APLD Price Action: Applied Digital shares were up 6.28% in after-hours trading at $42 at the time of publication Wednesday, according to market data.
