Applied Digital has entered into a long term agreement to deliver 200 megawatts of AI compute capacity at its under construction Polaris Forge 2 campus near Harwood, North Dakota. The company said the approximately 15 year lease represents about 5 billion dollars in contracted revenue and includes a right of first refusal for a further 800 megawatts tied to the site’s one gigawatt expansion potential.
The counterparty is described as a U.S. based investment grade hyperscaler. In parallel reporting, the deal lifts Applied Digital’s total leased capacity across its North Dakota campuses to 600 megawatts, with shares initially moving higher on the news. The company framed the agreement as a scale and speed play, with first capacity scheduled to begin coming online in 2026. The footprint is significant for a single state.
Lease Extends North Dakota Build Out
Polaris Forge 2 spans more than 900 acres and is engineered for high density, liquid cooled workloads, with a projected power usage effectiveness of 1.18 and near zero water consumption. Applied Digital said it has entered into a lease agreement with the hyperscaler to phase 200 megawatts across two buildings that start energizing in 2026 and reach full capacity in 2027. The same release notes the hyperscaler’s right of first refusal for an additional 800 megawatts, effectively reserving the entire campus expansion path. According to Reuters reported, the announcement pushes the firm’s leased base at Polaris Forge 1 and 2 to 600 megawatts.
As the company’s chief executive put it, “What sets us apart isn’t just the size of our pipeline, it’s how fast we can deliver,” said Wes Cummins. Delivery risk remains the central gating factor.
Financing And Counterparty Underpin Delivery
The revenue profile is anchored by multiyear leases with counterparties viewed as investment grade or better known names in AI infrastructure. Earlier in 2025, the company executed two 15 year lease agreements with CoreWeave valued at roughly 7 billion dollars, building out Polaris Forge 1 at Ellendale toward 400 megawatts over several phases.
On the capital side, Applied Digital also disclosed up to 5 billion dollars in investment from Macquarie Asset Management, including an initial 900 million dollar commitment, to accelerate high performance computing campuses. The structure reduces equity strain but keeps construction sequencing tied to site power, equipment lead times, and interconnection. “Our AI Factories are redefining how and where hyperscale infrastructure gets built,” Cummins said. Cash flow visibility improves with each milestone.
Power, Cooling, And Timeline Milestones
From a delivery standpoint, the next test is energization. The company plans to bring initial Polaris Forge 2 capacity online in 2026, then ramp to the full 200 megawatts in 2027, aligning construction windows with transformer and switchgear availability.
Design choices favour liquid cooling and waterless operations to contain operating costs in a continental climate, while the low PUE target will be scrutinized at load. If the hyperscaler exercises its option over the remaining 800 megawatts, procurement will need to lock in long lead electrical and mechanical packages early. For now, management points to North Dakota’s siting advantages and the ability to stage multiple buildings in parallel. The market will watch interconnection progress and rate stability closely.