Applied Digital signs $5 billion AI infrastructure lease with hyperscaler
FILE PHOTO: Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
Applied Digital on Wednesday signed a $5 billion lease with a U.S.-based hyperscaler for 200 MW at its Polaris Forge 2 campus in North Dakota, sending its shares up 4 per cent in premarket trading.
The agreement, expected to run about 15 years and generate about $5 billion in contracted revenue, extends Applied Digital's push to supply artificial intelligence compute capacity as developers race to secure infrastructure for growing demand.
With the deal, Applied Digital's total leased capacity at its Polaris Forge 1 and Polaris Forge 2 campuses in North Dakota rises to 600 MW.
Earlier this year, the company finalized a new lease agreement with CoreWeave for an additional 150 MW in the state.
Applied's shares have soared over 325 per cent so far this year fueled by investors betting big on the company's data center expansion plans.
