Applied Digital has signed a $5 billion lease agreement with a major U.S. hyperscaler for 200 megawatts of data center capacity at its Polaris Forge 2 campus in North Dakota, marking one of the largest AI infrastructure deals this year.
The 15-year contract will generate about $5 billion in revenue and strengthens Applied’s presence in the booming market for AI computing capacity. The deal expands the company’s total leased footprint across Polaris Forge 1 and 2 to 600 MW, as the AI industry faces unprecedented demand for high-performance infrastructure.
Applied Digital has been rapidly scaling its operations to serve major AI clients, including a 150 MW agreement with CoreWeave signed earlier in 2025. Shares of the company jumped 4% premarket, extending a rally that has lifted its value by over 325% this year.
“This lease positions Applied Digital as one of the top data infrastructure providers supporting AI compute growth in North America,” the company said in a statement.
Analysts note that the AI boom has triggered an arms race among hyperscalers — the world’s largest cloud providers — to secure reliable data center capacity. Applied Digital’s long-term agreements reflect a shift toward dedicated AI infrastructure leasing, offering steady cash flows and aligning with the needs of AI developers scaling foundation models and training clusters.
