Applied Digital Corp (NASDAQ: APLD) saw its stock price surge 6.79% in pre-market trading on Wednesday following the announcement of a major lease agreement with a U.S.-based investment grade hyperscaler. The company has secured a $5 billion AI factory lease for its Polaris Forge 2 Campus in North Dakota, marking a significant milestone in its expansion strategy.

The lease agreement, valued at approximately $5 billion over an estimated 15-year term, covers 200 megawatts of critical IT load designed to support artificial intelligence and high-performance computing infrastructure. This deal not only represents a substantial revenue stream for Applied Digital but also positions the company as a key player in the rapidly growing AI infrastructure market.

Wes Cummins, Chairman and CEO of Applied Digital, emphasized the company's execution capabilities, stating, "What sets us apart isn't just the size of our pipeline - it's how fast we can deliver." The agreement also includes a first right of refusal for an additional 800 megawatts, potentially expanding the deal to cover the full 1-gigawatt capacity of the Polaris Forge 2 Campus. With this new contract, Applied Digital's total leased capacity across its North Dakota campuses has now reached 600 megawatts, further solidifying its position in the industry.