Applied Digital Corporation's stock is soaring 16.11% during intraday trading on Thursday, driven by the announcement of a landmark long-term lease agreement with a major U.S. hyperscale cloud operator.

The data center company has entered into a 15-year take-or-pay lease agreement for its fourth AI factory campus, Polaris Forge 3, with the same investment-grade hyperscaler it previously partnered with. The deal is valued at approximately $7.5 billion in base-term contracted revenue, with the potential to reach about $18.2 billion if all renewal options are exercised.

This transaction significantly boosts Applied Digital's contracted lease revenue across its four AI factory campuses to $31 billion, potentially rising to $73 billion with renewals. The agreement validates the company's AI infrastructure business model and its capability to execute large-scale projects for major technology clients, fueling investor optimism about its future growth prospects in the AI data center market.