Applied Digital Lease Boosts Growth With $5.2B Deal
Applied Digital lease at Delta Forge 2 anchors hyperscaler load and the company filed $1.59B senior secured notes to fund Polaris Forge 1, lifting shares.
KEY TAKEAWAYS
- Filed a proposed $1.59 billion private offering of senior secured notes to fund Polaris Forge 1 ELN-04 construction.
- Delta Forge 2 lease covers 210 MW for 15 years and was reported to total about $5.2 billion.
- Notes are senior secured with first-priority liens and an Applied Digital completion guarantee.
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Applied Digital Inc. (APLD) said in a June 8, 2026, press release that it signed a long-term lease for 210 megawatts (MW) of IT load at Delta Forge 2, marking its fifth AI Factory campus. Reporting indicated the lease could generate about $5.2 billion in revenue over 15 years. The company also filed for a private offering of senior secured notes to finance expansion at Polaris Forge 1.
Delta Forge 2 Lease Details
Applied Digital described the Delta Forge 2 site as a “new southern state” AI Factory campus and identified the customer as a U.S.-based, high investment-grade hyperscaler. The lease covers 210 MW of IT load and runs for 15 years. Shares rose 8.7% in extended trading after the announcement. The company characterized this as its fifth AI Factory campus overall, expanding its footprint in hyperscale data centers [source:5].
Notes Offering and Uses
On June 9, 2026, APLD ComputeCo 3 LLC announced a proposed private placement of $1.59 billion aggregate principal amount of senior secured notes due 2031. The offering targets qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S [source:3].
Proceeds will fund construction and related costs for 150 MW of critical IT load at the ELN-04 building within Polaris Forge 1, repay a Goldman Sachs bridge loan, fund debt-service reserves, and cover transaction expenses. The notes are senior secured, backed by first-priority liens on substantially all assets and equity interests of the ELN-04 entities. Applied Digital will provide a completion guarantee for the project. The offering is subject to market conditions and other factors [source:3].
This structure frames the debt as project-level financing tied specifically to Polaris Forge 1, replacing interim bridge financing with a longer-term secured instrument linked to the campus buildout.
The lease and notes offering together highlight Applied Digital’s strategy of securing long-term hyperscaler contracts while mobilizing secured, project-specific capital to complete corresponding expansions.
