Applied Digital Confirms $3.2 Billion Delta Forge 2 Data Center in Alabama, Construction to Begin in October

Applied Digital has confirmed that its $3.2 billion Delta Forge 2 AI data center will be built on a 1,300-acre site near Brookwood in Tuscaloosa County, Alabama, with construction expected to begin in October. The company had announced the 210MW facility in June but withheld the location until now.

The project will span 1.2 million square feet at full build-out and is designed to support up to 1,000 construction jobs while creating 100 permanent positions. Operations are expected to commence in 2028. Applied Digital has described the end user as an "investment-grade hyperscaler" but has not disclosed its identity.

To support the local community, Applied Digital is committing $270 million in community benefits payments to the Tuscaloosa County Economic Development Authority over 20 years. The project is also expected to generate approximately $131 million in tax revenue for the region.

"For our community, this project is about creating opportunities for local families, strengthening our schools and positioning Brookwood for the future," said Brookwood mayor Joe Barger. "We anticipate that Applied Digital will be a good neighbor and a long-term community partner, and expect this $3.2 billion investment to benefit Brookwood residents for generations to come."

Founded in 2021 as Applied Blockchain, Applied Digital has pivoted toward developing AI and HPC data centers and has secured multiple large-scale contracts. Its portfolio now spans five AI Factory campuses with a combined critical IT load of 1.4GW and approximately 2.15GW of grid-connected utility power.

The company operates Polaris Forge 1 and 2 in North Dakota—located in Ellendale and Harwood respectively—with Polaris Forge 1 leased to CoreWeave and much of Polaris Forge 2 committed to another investment-grade hyperscaler. Polaris Forge 3, situated on 600 acres in an unnamed northern state, will provide 300MW of critical IT load to the same hyperscaler that signed capacity at Applied Digital's Delta Forge 1 campus, with initial operations anticipated in August 2027.

"Delta Forge 2 reflects the model we are building across Applied Digital—repeatable AI infrastructure delivered at scale and built for the long term," said Wes Cummins, chairman and CEO of Applied Digital. "But our success also depends on the success of the communities where we operate. We partner with communities where our investment genuinely matters, and where the resulting jobs, tax base, and long-term economic activity can have a measurable impact. We have a proven track record of delivering on our commitments to our host communities, and we look forward to bringing that same commitment to Brookwood."