Applied Digital stock trades on Nasdaq as APLD. The Dallas company designs, builds and owns AI data centers and leases them to GPU tenants under 15-year take-or-pay contracts. If you are researching applied digital stock, you are looking at a build-to-suit landlord, not a chipmaker.
How the Build-to-Suit Lease Produces Revenue
The HPC Hosting business books two kinds of revenue once a campus is delivered. Tenant fit-out revenue pays for finishing a building to the tenant’s power and cooling specification, and data center rental revenue is the recurring rent that follows.
In fiscal 2026, the year ended May 31, 2026, fit-out work made up about $270.6 million of $611.3 million in total revenue, according to the FY2026 10-K. Rental and other revenue added $114.7 million.
ChronoScale, the cloud unit spun into a separately listed company that Applied Digital still owns about 96 percent of, added $71.6 million and is excluded from every non-GAAP figure the company reports.
The 10-K states the concentration problem directly: one customer accounted for 59 percent of revenue from continuing operations, and no other customer passed 10 percent.
The halls are engineered for air-cooled or liquid-cooled GPU racks, the market that Vertiv’s cooling and power gear serves. Applied Digital says its standardized design delivers a roughly 150 megawatt building in 14 to 18 months.
The Contracted Lease Portfolio as of May 31, 2026
Applied Digital had leases signed on five campuses covering about 1,410 megawatts of critical IT load, representing about $36.2 billion in contracted revenue over the 15-year base terms. Every lease is take-or-pay and non-cancellable, so a tenant that quits early owes the full remaining contract value.
Polaris Forge 1 in Ellendale, North Dakota anchors the portfolio: 400 megawatts leased to CoreWeave across three leases signed in May and August 2025. The first 100 megawatt building went live in October 2025, the second is partially operational and the third is due in 2027.
Polaris Forge 2 in Harwood, North Dakota carries a 200 megawatt lease with an investment-grade hyperscaler the filing does not name. Polaris Forge 3, Delta Forge 1 and Delta Forge 2 are all leased to a single high investment-grade hyperscaler, per the July 27, 2026 earnings release.
Where a pure landlord sits next to chip vendors and operators is covered in the broader AI data center stocks guide. The table below breaks out each campus.
| Campus | Anchor tenant | Contracted critical IT load | Lease term | Contracted revenue | Expected delivery |
|---|---|---|---|---|---|
| Polaris Forge 1 (Ellendale, ND) | CoreWeave | 400 MW | 15 years | ~$11.0B | 2H 2025 to 1H 2027 |
| Polaris Forge 2 (Harwood, ND) | Investment-grade hyperscaler | 200 MW | 15 years | ~$5.0B | 2H 2026 to 1H 2027 |
| Polaris Forge 3 (northern US, two buildings) | High investment-grade hyperscaler | 300 MW | 15 years | ~$7.5B | 2H 2027 to 2H 2028 |
| Delta Forge 1 (Boyce, LA) | High investment-grade hyperscaler | 300 MW | 15 years | ~$7.5B | 1H 2027 to 1H 2028 |
| Delta Forge 2 (southern US, one building) | High investment-grade hyperscaler | 210 MW | 15 years | ~$5.2B | 1H 2028 |
| Total | 1,410 MW | ~$36.2B | 2H 2025 to 2H 2028 |
These figures come from the 10-K’s contracted lease table as of May 31, 2026, and they exclude the renewal options attached to each lease.
What the Buildout Costs and What the 10-K Says Can Go Wrong
Applied Digital used $2.94 billion in investing activities in fiscal 2026 against $611.3 million of revenue. Financing brought in $6.88 billion: $4.1 billion of long-term debt, $1.8 billion from noncontrolling-interest partners and $627.8 million from stock offerings.
Most of that debt came from two subsidiary bond deals: $2.35 billion of 9.250 percent senior secured notes due 2030 and $2.15 billion of 6.750 percent notes due 2031, the second earmarked for Polaris Forge 2.
Year-end cash was $1.6 billion unrestricted and $2.6 billion restricted. The 10-K says the company has historically incurred losses and relied on equity and debt financing.
The risk factors name the failure modes. A lessee can terminate if construction runs significantly late, and a vacated building may not re-lease quickly or on the same terms. Polaris Forge 2’s first capacity is targeted for the second half of calendar 2026.
The legacy hosting business still serves one crypto mining customer with about 1.5 years left on its contract, a shrinking line that mirrors the shift TeraWulf made from bitcoin mining to AI hosting.
FAQ: Applied Digital Stock
Who are Applied Digital’s tenants?
CoreWeave leases all 400 megawatts at Polaris Forge 1. The other four campuses are leased to hyperscalers the 10-K describes only as investment-grade or high investment-grade, without naming them. A single crypto mining customer still occupies the legacy Jamestown and Ellendale hosting sites in North Dakota.
Is Applied Digital profitable?
No. For fiscal 2026 the company reported a net loss attributable to common stockholders from continuing operations of $249.2 million, or $0.91 per share, on $611.3 million of revenue. Non-GAAP adjusted EBITDA, which excludes ChronoScale, was $107.2 million for the fiscal year.
What does build-to-suit mean for APLD?
Applied Digital designs and constructs each data center to a named tenant’s power, cooling and IT-load specification, with the 15-year take-or-pay lease signed before delivery. It books fit-out revenue during construction and rent afterward, and a tenant can terminate if construction runs significantly late.
