Applied Digital Corporation's stock surged 7.88% intraday on Wednesday, significantly outperforming the broader market.

The sharp rise follows the company's announcement that it signed a landmark 15-year lease agreement with a U.S.-based investment-grade hyperscaler for its Polaris Forge 3 AI Factory campus. The deal, structured as a take-or-pay contract, is valued at approximately $7.5 billion in base-term revenue and could reach about $18.2 billion if all renewal options are exercised.

This agreement increases Applied Digital's total contracted lease revenue across its four campuses to $31 billion, potentially rising to $73 billion with renewals, while expanding its contracted capacity to 1,200 MW of critical IT load. Initial operations at the new facility are expected to commence in August 2027.