Applied Digital Boosts AI Data Center Backlog to $36B with New Lease

Key Facts

1Applied Digital secured a 210 MW, 15-year lease at Delta Forge 2, increasing its total contracted revenue backlog to $36B.

2The company issued $1.59B in senior secured notes to fund construction and repay bridge debt.

31.4 GW of critical IT load has been pre-sold under long-term, take-or-pay leases to investment-grade hyperscalers.

Amid surging demand for cloud computing infrastructure, Applied Digital has announced a massive expansion of its AI data center backlog. The company secured a 15-year lease for 210 MW of capacity at its Delta Forge 2 facility, driving its total contracted revenue backlog to $36 billion. To fund this growth, Applied Digital issued $1.59 billion in senior secured notes aimed at financing construction and retiring bridge debt, noting that 1.4 GW of critical IT load has already been pre-sold to investment-grade hyperscalers.

This expansion occurs as data center REITs like Equinix and Digital Realty race to secure power and space for AI workloads. Per market data, Applied Digital's successful $1.59B capital raise de-risks its development pipeline relative to smaller peers. Industry experts have noted that the shift toward high-density AI cooling requirements is creating a premium for new-build sites like Delta Forge 2, which are specifically designed for next-generation GPU clusters.

Investors should watch for the company's ability to maintain construction timelines amid a complex supply chain for electrical components. On the economic calendar, the upcoming speech by Fed Vice Chair Barr on June 16 will be critical for assessing the long-term interest rate environment affecting capital-intensive firms. The APLD stock performance remains tied to its execution of the $36B backlog and its ability to convert pre-sold capacity into operational cash flow.