Applied Digital Inks $7.5B Lease for 300 MW at Polaris Forge 3, Expanding AI Factory Footprint

Applied Digital announced on Wednesday that it has entered into a 15-year take-or-pay lease agreement with a U.S.-based high investment-grade hyperscaler for its Polaris Forge 3 campus, located in a northern state. The lease covers 300 megawatts of critical IT load and is valued at approximately $7.5 billion in base-term revenue, with potential total value reaching $18.2 billion if all renewal options are exercised.

This agreement represents the second long-term lease with the same hyperscaler, following a prior deal at the Delta Forge 1 campus. With this addition, Applied Digital's total contracted lease revenue across its four AI Factory campuses now stands at $31 billion, or $73 billion if all renewal options are exercised.

Approximately 65% of Applied Digital's contracted revenue is supported by U.S.-based investment-grade hyperscalers. The company's portfolio currently includes 1,200 megawatts of critical IT load and about 1,670 megawatts of gross utility power capacity across its AI Factory campuses.

The Polaris Forge 3 campus spans over 600 acres and is purpose-built for high-density AI workloads. It incorporates Applied Digital's proprietary waterless cooling technology, high-density power delivery systems, and advanced liquid-cooling architecture to meet the demands of next-generation AI infrastructure.

Initial operations at Polaris Forge 3 are expected to begin in August 2027. Beyond the current contracted capacity, Applied Digital is actively marketing more than 1.7 gigawatts of grid-connected utility power across both newly added and existing sites in its portfolio.