Applied Digital Corporation (NASDAQ: APLD) is drawing significant investor attention following the announcement of a major new lease agreement worth $7.5 billion in contracted revenue.
On May 20, Applied Digital Corporation (NASDAQ: APLD) announced a long-term lease agreement for its Polaris Forge 3 AI data center campus with a U.S.-based investment-grade hyperscaler previously involved in the Delta Forge 1 project.
The 15-year agreement carries an estimated base contract value of $7.5 billion, adding substantial weight to the company’s already growing infrastructure portfolio.
The Polaris Forge 3 campus is designed to deliver 300 megawatts of critical IT capacity, supported by approximately 430 megawatts of utility power for large-scale artificial intelligence and high-performance computing workloads.
The facility will incorporate advanced liquid-cooling systems and proprietary waterless cooling technology to support high-density AI infrastructure deployments.
The new deal brings APLD’s total contracted lease revenue across four AI campuses to approximately $31 billion, equivalent to roughly $2.1 billion annually.
Following the announcement, Lake Street raised its price target on APLD to $70 from $55 on May 21, while reaffirming a Buy rating on the shares.
The firm highlighted the company’s expanding hyperscaler customer base, pointing specifically to the addition of a fourth major lease agreement as a key driver of its updated outlook.
Lake Street stated that market demand for large-scale digital infrastructure remains strong and expressed confidence that the company could continue securing additional business opportunities as it strengthens its position within the hyperscale data center market.
Applied Digital Corporation is a U.S.-based digital infrastructure company that develops and operates large-scale data centers for AI, high-performance computing, and cloud services.
The company’s growing contracted revenue backlog signals increasing institutional demand for purpose-built AI infrastructure at a time when hyperscaler investment in computing capacity continues to accelerate.
