Applied Digital locks in $36.2 billion in long-term AI data center leases, the largest neocloud capacity contract, validating multi-year customer commitments.

Applied Digital Corporation designs, builds, owns and operates large-scale data centers for high-performance computing workloads including AI and machine learning. The company has pivoted from blockchain hosting to a proprietary AI-focused "factory" model. It now reports two operating segments—HPC Hosting and legacy Data Center Hosting—while consolidating its cloud subsidiary ChronoScale.

As of May 31, 2026, long-term leases covered 1,410 MW of contracted critical IT load across five Polaris Forge and Delta Forge campuses. These commitments represent approximately $36.2 billion of take-or-pay, non-cancellable revenue over initial 15-year terms, anchored primarily by CoreWeave and several investment-grade hyperscalers.

The company has approximately 1.5 GW of capacity that is either contracted and operating or under construction. It maintains an active power pipeline of over 3 GW, more than 5 GW of extended opportunities, and 1.2 GW of planned gas-fired generation capacity being developed in partnership with Base Electron.

The customer base exhibits pronounced concentration, with legacy hosting for a single crypto-mining customer accounting for 286 MW and a small number of hyperscale tenants comprising the remainder of the portfolio.

Key uncertainties facing the business include substantial capital requirements and debt levels with restrictive covenants, construction and power-supply risks, North Dakota geographic concentration, evolving AI and energy regulation, and the ongoing consolidation of ChronoScale's operational results into the company's consolidated financial statements.