Shares of Applied Digital Corporation (NASDAQ: APLD) surged 5.09% in Wednesday's trading session following the announcement of a significant lease agreement for its Polaris Forge 2 Campus. The company has secured a deal with a U.S.-based investment-grade hyperscaler, representing approximately $5 billion in total contracted revenue over an anticipated 15-year term.

The lease agreement covers 200 megawatts (MW) of critical IT capacity designed to support the hyperscaler's AI and high-performance computing (HPC) operations. The first 200 MW will be delivered across two buildings, coming online in 2026 and reaching full capacity in 2027. Additionally, the hyperscaler has a first right of refusal for an additional 800 MW, encompassing the full 1-gigawatt (GW) expansion potential of the Polaris Forge 2 Campus.

This deal significantly bolsters Applied Digital's position in the AI infrastructure market. With this lease, the company's total contracted capacity across its Polaris Forge 1 and 2 campuses in North Dakota has reached 600 MW. The news comes on the heels of Applied Digital's recent earnings report, where it beat analyst estimates for both revenue and earnings per share. The company's strategic focus on AI and high-performance computing infrastructure appears to be gaining traction, as evidenced by this latest multi-billion dollar contract.