Delta Forge 1 AI data center campus will be leased for 15 years at a cost of $7.5 billion after its developer, Applied Digital signed agreements with an unnamed US hyperscaler. The deal, announced on April 23, 2026, covers 300 MW of high-density computing capacity and represents one of the company’s largest commercial commitments to date, pushing its total contracted lease backlog above $23 billion.
The announcement also triggered a sharp market reaction, with Applied Digital shares rising between 9% and 14% intraday, reflecting investor enthusiasm for long-term AI infrastructure demand and recurring revenue visibility.
Delta Forge 1 AI Data Center Campus: Project Overview
Delta Forge 1 project is important in Applied Digital’s transformation from a legacy digital infrastructure operator into a pure-play AI data center landlord. The southern United States data center campus also positions Applied Digital to compete in the hyperscale cloud and AI compute segment alongside major infrastructure developers in North America.
Additionally, the leased capacity forms part of a 430 MW campus designed specifically for AI and high-performance computing workloads. It will feature advanced power delivery systems, high-efficiency cooling architecture, and large-scale grid interconnection infrastructure.
Industry analysts also note that the deal speaks of an ongoing structural trend. This is where hyperscalers such as Amazon Web Services, Microsoft Azure, Google Cloud, Meta, and Oracle are aggressively locking in long-term capacity agreements to secure AI compute supply amid global shortages of data center infrastructure.
Project Scope and Agreement Structure
The agreement is structured as a 15-year lease contract generating approximately $7.5 billion in contracted revenue. This averages to about half a billion dollars annually over its lifecycle.
Key parameters include:
- Capacity leased: 300 MW of IT load
- Total campus size: 430 MW Delta Forge 1 AI campus
- Revenue profile: Long-term recurring lease income
- Revenue backlog impact: Pushes total contracted revenue above $23 billion
The structure also highlights a growing industry shift where AI infrastructure is increasingly financed through long-duration take-or-pay lease agreements. This, in turn, reduced revenue volatility for developers while guaranteeing capacity access for hyperscalers.
Project Cost and Capital Strategy
Alongside the lease announcement, Applied Digital indicated plans to raise up to $600 million in additional financing, including:
- A $300 million secured bridge facility for campus development
- A $300 million revolving credit facility for general liquidity and expansion
This is the capital-intensive nature of hyperscale data center development, where multi-billion-dollar lease agreements are supported by debt structures and other project finance instruments.
Delta Forge 1 AI Data Center Campus: Project Delivery and Infrastructure Build-Out
Delta Forge 1 is part of Applied Digital’s broader “AI Factory” strategy, which focuses on constructing purpose-built campuses capable of supporting next-generation GPU-intensive workloads.
The site spans more than 500 acres in the southern United States. Delta Forge 1 AI data center campus also has design features tailored to AI-scale computing, including:
- High-density power distribution networks
- Industrial-scale cooling systems
- Modular expansion architecture for phased capacity growth
Initial operations at the facility are expected to commence around mid-2027.
Delta Forge 1 AI Data Center Campus Project Fact Sheet
Developer: Applied Digital
Location: Southern United States (Exact location undisclosed)
Total Campus Capacity: 430 MW
IT Load: 300 MW
Site Area: 500 acres
Initial Build: Two data center buildings, 150 MW each
Latest Lease Agreement:
- Value: $7.5 billion
- Duration: 15 years
- Capacity covered: 300 MW
Tenant: Undisclosed US-based investment-grade hyperscaler
Revenue Impact: Total contracted backlog exceeds $23 billion
Groundbreaking: January 2026
Current Construction Status: Active early-stage construction and site development
Initial Operations: Target mid-2027
Future Expansion: Post-2028 scaling phase
Risks to Look Out For
Despite strong demand visibility, key risks remain. These include:
- High capital intensity and reliance on debt financing
- Execution risk in large-scale multi-phase construction
- Concentration risk tied to hyperscaler customers
- Power availability and grid interconnection constraints
- Potential cyclical slowdown in AI infrastructure investment beyond 2027–2028
If execution is successful, Delta Forge 1 AI data center campus could feature among some of the most important digital infrastructure assets in the US. This is amid a growing global AI infrastructure network and an expanding US data centers portfolio which features multiple billion-dollar investments including the $6.1 billion Denton AI Data Center Campus being developed by Core Scientific in Texas.
