Applied Digital Stock Soars 7% Pre-Market On $5B AI Factory Lease With US Hyperscaler

• Applied Digital said that this was a nearly 15-year lease agreement to deliver 200 MW of critical IT capacity at Polaris Forge 2.
• The company noted that the 200 MW capacity would support the hyperscaler’s artificial intelligence (AI) and high-performance compute (HPC) infrastructure. 
• Applied Digital’s total leased capacity with two hyperscalers across its Polaris Forge 1 and Polaris Forge 2 campuses in North Dakota has now reached 600 MW.

Applied Digital (APLD) shares jumped nearly 7% before the bell on Wednesday after the company announced a $5 billion AI factory lease with a U.S.-based investment-grade hyperscaler at Polaris Forge 2 campus, currently under construction near Harwood, North Dakota. 

The company said this was a nearly 15-year lease agreement to deliver 200 megawatts (MW) of critical IT capacity at Polaris Forge 2 to support the hyperscaler’s artificial intelligence (AI) and high-performance compute (HPC) infrastructure. 

Retail sentiment on Applied Digital improved to ‘bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

What To Know About Applied Digital’s AI Factory Lease

Applied Digital said the Hyperscaler also holds a first right of refusal for an additional 800 MW of critical IT, representing the full expansion potential of the 1-gigawatt (GW) Polaris Forge 2 Campus.

The company said that with this agreement, Applied Digital’s total leased capacity with the two hyperscalers across its Polaris Forge 1 and Polaris Forge 2 campuses in North Dakota has now reached 600 MW.

Polaris Forge 2

The company said that the Polaris Forge 2 spans more than 900 acres and is engineered to deliver efficiency with a projected power usage effectiveness of 1.18 and near-zero water consumption.

Applied Digital stated that the initial 200 MW will be phased across two buildings, with operations expected to begin in 2026 and reach full capacity by 2027. The campus is designed for future expansion.

This follows Applied Digital's announcement of an additional 150MW lease with CoreWeave at its Polaris Forge 1 Campus, as well as a $5.0 billion AI infrastructure partnership with Macquarie Asset Management.

Shares of Applied Digital have gained 316% this year.

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