Applied Digital reported fiscal fourth-quarter 2026 revenue of $258.7 million, surging 407 percent year-over-year, as the company signed approximately $20 billion in new long-term AI infrastructure contracts with a single high-grade hyperscaler customer.
The three new 15-year leases represent a defining moment for the data center operator. Delta Forge 1 in Louisiana and Polaris Forge 3 in North Dakota each provide roughly $7.5 billion in contracted revenue, while Delta Forge 2 in another southern state adds $5.2 billion, according to the company’s earnings release issued July 27, 2026. “Together, these deals represent roughly $20 billion in long-term contracted revenue from a single, world-class customer that has now chosen us three times in a row,” said Wes Cummins, Applied Digital’s chairman and chief executive officer.
These contracts underscore the intensity of hyperscaler demand for AI-ready data center capacity. Hyperscalers including Microsoft, Amazon, Alphabet, Meta, and Oracle are collectively committing over $700 billion to AI data center infrastructure in 2026, according to reporting from July 13, 2026, as the race to build generative AI infrastructure accelerates globally. Applied Digital is now positioned as one of the primary beneficiaries of this buildout.
With the three new leases, Applied Digital has now secured 1.4 gigawatts of contracted critical IT load across five campuses—Polaris Forge 1, 2, and 3 in North Dakota and Delta Forge 1 and 2 in Louisiana and another southern state—representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion if all renewal options are exercised. The company is actively marketing an additional 1.7 gigawatts of capacity across multiple states.
Applied Digital’s HPC Hosting Business, which designs and operates the AI Factory data centers, generated $203.0 million in revenue for the quarter. The company brought its first 100-megawatt data center at Polaris Forge 1 online in October 2025 and delivered Phase 1 of Building 2 (75 MW) on schedule in June 2026, bringing total live capacity at that campus to 175 MW. Cummins emphasized execution as a competitive advantage: “We believe delivering on time is a genuine differentiator in this industry. We brought Polaris Forge 1’s first 100 MW online on schedule and have now scaled total live capacity at the campus to 175 MW. We’re not just securing power—we’re turning it into operational AI capacity.”
The company is advancing a strategic power initiative to fuel expansion. Applied Digital is working with Base Electron Corp., an independent power producer developing approximately 1.2 gigawatts of natural gas-fired generation in the Dakotas in collaboration with regional utilities. Applied Digital shareholders own approximately 10 percent of Base Electron through the company’s investment, deepening access to abundant, reliable, low-cost power—a critical advantage for existing campuses and future growth.
Applied Digital also completed the separation of its cloud services business during the quarter, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation, now trading on Nasdaq under the symbol CHRN. Applied Digital currently owns approximately 96 percent of ChronoScale, which is consolidating into the company’s financial statements but excluded from non-GAAP results.
For the full fiscal year 2026, Applied Digital reported revenues of $611.3 million, up 167 percent year-over-year. Adjusted EBITDA reached $107.2 million, and net operating income totaled $90.4 million. The company’s Data Center Hosting Business, which operates 286 megawatts for bitcoin mining across two North Dakota sites, generated $37.3 million in quarterly revenue and $12.5 million in segment operating profit, described by management as “the highest return-on-assets business in the company.”
Sources
- Applied Digital investor relations — Q4 2026 earnings announcement with revenue figures, contract details, and management commentary
- Yahoo Finance / Intellectia AI — Hyperscaler AI capex spending at $700+ billion in 2026
- Goldman Sachs — Hyperscaler capital spending projections and AI infrastructure investment outlook
