Applied Digital Corp (APLD)’s Blue-Chip Customer Returns for More

Applied Digital Corp (NASDAQ:APLD) is one of the best data center stocks to invest in according to billionaires. Applied Digital shares have gained around 57% year-to-date and have surged more than 245% over the past 12 months. Analysts continue to see substantial upside potential in the stock.

Applied Digital Corp (NASDAQ:APLD) has secured another major data center deal with an existing hyperscale customer. On May 20, the company said it signed a 15-year lease for its fourth AI-focused data center campus, known as Polaris Forge 3, with this customer. This is the same customer that the company previously signed for the Delta Forge 1 campus.

Applied Digital said the latest contract is expected to generate around $7.5 billion in revenue over the initial lease term. If all renewal options are exercised, the total value could reach $18.2 billion. According to Applied Digital, the latest deal pushes its contracted revenue backlog to roughly $31 billion across four campuses. The backlog could increase to $73 billion if customers extend their leases.

About 65% of Applied Digital’s contracted revenue is now backed by blue-chip customers. These are US-based investment-grade hyperscalers. The Polaris Forge 3 project will provide 300 megawatts of computing capacity and is scheduled to begin operations in 2027. So far, Applied Digital’s total contracted capacity is 1.2 gigawatts.

Applied Digital Corp (NASDAQ:APLD) builds and operates data centers and provides colocation services. The company provides the digital infrastructure and services to power AI, cloud, and blockchain workloads. It has purpose-built infrastructure for training and running AI models.

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