Applied Digital Corporation Announces Major Lease Agreement and Financing Plans for Delta Forge 1 Campus

Key Highlights from the 8-K Filing

• New Lease Agreement at Delta Forge 1 Campus: Applied Digital Corporation (“Applied Digital” or the “Company”) has entered into a significant lease agreement for its state-of-the-art, purpose-built Delta Forge 1 Campus, currently under construction.
• Updated Investor Presentation: The Company posted an updated investor presentation to its website, providing new insights into its growth strategy and project pipeline.
• Planned Financing Facilities: Applied Digital expects to secure up to \$600 million in new credit facilities to support ongoing and future development, including a \$300 million senior secured bridge facility and a \$300 million senior secured revolving credit facility.
• Strong Revenue Contracts: The Company has secured multi-billion dollar, long-term lease agreements across its campuses with leading hyperscale and AI customers.
• Strategic Partnership with Macquarie: Macquarie Asset Management has agreed to potentially commit up to \$5 billion in capital for future data center development, unlocking up to \$25 billion for the Company’s pipeline.
• Convertible Bond Issuance: \$450 million in convertible notes have been issued at a 2.75% interest rate, strengthening the Company’s balance sheet.

Details Investors Should Know

Delta Forge 1 Campus Lease Agreement

On April 23, 2026, Applied Digital announced the execution of a lease agreement at its Delta Forge 1 Campus in Alexandria, Louisiana. This campus is designed for high-performance computing (HPC) and artificial intelligence (AI) workloads, with a contracted critical IT load of 300 megawatts (MW). The lease is with a high investment-grade hyperscaler and includes:

• ~15-year base term with three 5-year options
• Approximately \$7.5 billion in contracted revenue for the 300 MW base term
• Expected site net operating income (NOI) margins of 85% (+/- 3%)
• Anticipated capital expenditure (CapEx) per MW of \$11M–\$13M
• 1H28 expected delivery dates

This is a transformative milestone for Applied Digital, representing a major step in its strategy to support the explosive growth in AI and data center demand.

Expansion of Financing Capabilities

The Company is in advanced discussions to secure up to \$600 million in new credit facilities, including:

• Up to \$300 million senior secured bridge facility to fund continued development of the 150 MW Building 3 data center at the Polaris Forge 1 campus
• Up to \$300 million senior secured revolving credit facility to support pre-lease and post-lease development activities, general working capital, and transaction expenses

These facilities are expected to close promptly and to be provided by a syndicate of bank lenders under customary market terms.

Strategic Partnership with Macquarie Asset Management

Applied Digital has partnered with Macquarie Asset Management, the world’s top infrastructure investment manager, which has agreed to collaborate and potentially commit up to \$5 billion in capital. This partnership could unlock up to \$25 billion for data center projects. The arrangement includes:

• Macquarie receiving a 15% common equity interest in APLD HPC Holdings, a subsidiary holding the data centers financed by Macquarie
• Macquarie’s right to invest in future hyperscaler projects
• Preferred equity investments with a 12.75% PIK (payment-in-kind) interest rate, perpetual maturity, and redemption/exit provisions
• Applied Digital expects to recover over \$300 million of its equity investment in the Ellendale HPC Campus after completion

This partnership positions Applied Digital with a strong capital base to pursue further growth, scale, and competitive advantage in the burgeoning AI data center market.

Other Notable Developments

• Convertible Notes: The Company recently issued \$450 million in convertible notes at a 2.75% interest rate, providing additional balance sheet flexibility.
• Long-Term Revenue Visibility: Applied Digital has secured multi-billion dollar lease agreements across its campuses. For example, Polaris Forge 1 (400 MW) and Polaris Forge 2 (200 MW) are fully leased to investment-grade hyperscalers and AI firms, with aggregate anticipated contract values exceeding \$16 billion over their terms.
• Operational Footprint: In addition to AI-focused campuses, the Company operates two blockchain-focused data centers in North Dakota with a combined capacity of 286 MW, providing stable revenue streams from leading cryptocurrency mining clients.
• Geographic & Strategic Advantages: The Company’s campuses in North Dakota and Louisiana benefit from access to low-cost, abundant energy, favorable climate for cooling, advanced fiber connectivity, and economic incentives.
• Growth Pipeline: Applied Digital has an active development pipeline of 3.5GW+ and an extended pipeline of over 5GW, with controlled land and utility power agreements for scalable expansion.

Potential Price-Sensitive Information

• Execution of a major lease at Delta Forge 1 with a high investment-grade hyperscaler, representing \$7.5B in contracted revenue, provides long-term revenue visibility and could materially impact future earnings and share valuation.
• Securing up to \$600 million in new credit facilities and the \$5 billion partnership with Macquarie significantly enhance the Company’s ability to finance large-scale projects, accelerating growth and reducing financing risk.
• Aggregate contracted revenue across campuses now exceeds \$16 billion, with high site NOI margins (85%–88%), providing strong confidence in future cash flows.
• Convertible debt issuance at favorable rates strengthens liquidity and may support additional expansion or opportunistic investments.
• Rapidly scaling development pipeline and the ability to secure long-term, investment-grade customers positions Applied Digital as a leading player in the AI data center market, potentially driving significant share price appreciation as projects are delivered and revenues recognized.

Conclusion

Applied Digital Corporation’s latest 8-K filing and investor presentation reveal a company at the forefront of meeting the surging demand for AI and HPC data centers. With multi-billion dollar, long-term lease agreements, robust financing arrangements, and a strategic partnership with Macquarie, Applied Digital is well positioned for accelerated growth and value creation. Investors should closely monitor the progress of the Delta Forge 1 project, future lease signings, and developments in the financing pipeline, as these events are likely to be highly price-sensitive and could drive further upside in the Company’s shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. All forward-looking statements are subject to risks and uncertainties, including but not limited to the Company’s ability to complete construction as planned, secure financing, execute lease agreements, and achieve projected financial results. Investors should review all filings and disclosures by Applied Digital Corporation and consult with a qualified financial advisor before making investment decisions.

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