• New lease signings could double existing projected USD 16bn of contracted revenues
• Contract terms becoming more favorable

Applied Digital is in advanced negotiations with an additional hyperscale customer for three new sites and 900 MW of capacity, a potential expansion that could push its 2026 leasing total beyond the USD 16bn secured in 2025, according to CEO Wes Cummins.

Speaking on the company’s fiscal second-quarter earnings call, Cummins said the company is “well positioned” to begin construction at these new sites, which span the Dakotas and select southern US markets. The discussions, he added, are with an investment-grade hyperscaler and underscore surging demand for artificial intelligence and cloud computing infrastructure.

Cummins reiterated remarks he made recently on CNBC, noting that if finalized, these agreements could exceed Applied Digital’s current leasing record. “You’re reading that correctly,” he told an analyst who linked the 900 MW in active discussions to the company’s goal of matching or surpassing its USD 16bn in 2025 lease volume.

Applied Digital currently has visibility toward a 5 GW operational portfolio by 2030 or 2031 across five potential sites, with two existing campuses — Polaris Forge One and Two — expected to reach 1.4 GW and 1 GW respectively. These sites are already anchored by a 15-year, USD 11bn lease with CoreWeave for 400 MW and a separate USD 5bn lease with another investment-grade hyperscaler for 200 MW.

Cummins said the company’s contracts are becoming increasingly favorable, not just in pricing but in terms of structure. “We’re getting more favorable terms… for things like cancellation and transferability,” he said. Applied’s lease agreements are effectively non-cancelable over their 15-year terms — customers may cancel, but must pay the full remaining contract value. Transfer clauses also require the assignee to meet or exceed the original counterparty’s credit rating, adding stability to long-term cash flows.

Cummins emphasized that Applied’s ability to scale, not demand, is now the key constraint. “We’re focused on how many sites we can do construction across,” he said. “Demand is not the limiter.”

The company is expected to begin construction on at least one new campus by the end of January, backed by a high degree of confidence in closing another lease with a new hyperscale customer. Applied is currently qualified with five of its six targeted investment-grade hyperscaler prospects.

*This story was originally published exclusively for NPM subscribers.