Applied Digital Hits 1GW Milestone with Massive $7.5B AI Infrastructure Lease

Key Facts

1Applied Digital secured a 15-year, $7.5B take-or-pay lease at its Polaris Forge 3 site.

2The company surpassed 1 GW of total contracted IT load, with 65% of revenue tied to investment-grade clients.

Applied Digital has announced a major milestone by securing a 15-year, $7.5 billion take-or-pay lease at its Polaris Forge 3 site. This agreement has propelled the company to surpass 1 gigawatt (GW) of total contracted IT load, with 65% of its revenue now tied to investment-grade clients. The company is effectively transitioning into a scaled AI infrastructure platform, supported by repeat demand from hyperscalers.

This massive contract represents significant growth compared to previous quarters, positioning the firm alongside industry peers like Equinix and Digital Realty. Per market data, the expansion of high-performance computing capacity is essential as generative AI adoption accelerates globally. Analysts note that long-term take-or-pay structures provide strong revenue visibility, though the company's high valuation multiples remain a point of discussion for value-oriented investors.

Regarding stock performance, APLD remains at key levels following this strategic expansion (close May 21, 2026). Investors should watch for upcoming catalysts, including operational updates on the Polaris Forge site and broader macro indicators such as the NY Empire State Manufacturing Index, which can influence sentiment toward high-growth infrastructure stocks.