Key insights
- APLD, an AI data center developer, has secured new lease agreements significantly boosting its future revenue potential. Signed contracts alone project a 4.8x increase in revenue to $2.45B annually. This growth is based on 1.7 GW of developed capacity, with a total pipeline of 5 GW, indicating substantial future expansion. The company acts as a landlord for AI infrastructure, leasing space to hyperscalers. This news suggests strong demand and growth in the AI infrastructure sector, potentially benefiting related technology and real estate companies.
So their business model is basically to sign tenants. Think of them as a landlord for AI infrastructure, they build the building, the hyperscaler moves in and pays rent.
They signed a new lease yesterday, so I did run the numbers again:
Based on signed lease agreements alone, APLD is set to generate $611M per quarter / $2.45B annually once all contracted capacity comes online, and that's fully guaranteed.
They're also still leasing out capacity they're actively building right now. Once that's filled too, revenue hits $749M per quarter / $3B annually.
For context, they did $126M in revenue last quarter meaning signed contracts alone already represent a 4.8× increase (+385%) from where they are today.
And this only accounts for the 1.7 GW they're actively developing. Their total pipeline is 5 GW so this is just the beginning.
I made an Excel down below:
*Brackets =[unleased ](yet)
|Campus|MW leased|Tenant|Total contracted (~15yr)|Annual revenue|Quarterly revenue| |:-|:-|:-|:-|:-|:-| ||||||| |leased / contracted|||||| |Polaris Forge 1|400 MW|CoreWeave|~$11.0B|~$733M|~$183M| |Ellendale, ND|||||| |Polaris Forge 2|200 MW|Inv-grade hyperscaler|~$5.0B|~$333M|~$83M| |Harwood, ND|[100 MW]|[~$2.5B]|[~$167M]|[~$42M]|| |Delta Forge 1|300 MW|Inv-grade hyperscaler #2|~$7.5B|~$500M|~$125M| |430 MW campus|[130 MW]|[~$3.25B]|[~$217M]|[~$54M]|| |Polaris Forge 3|300 MW|Inv-grade hyperscaler|~$8.0B|~$533M|~$133M| |Delta Forge 2|210 MW|Inv-grade hyperscaler|~$5.2B|~$347M|~$87M| |Southern state|||||| |+ confirmed pipeline (under construction / in negotiation, not yet leased)|||||| |PF2 remaining|[100 MW]|In negotiation|[~$2.5B est.]|[~$167M est.]|[~$42M est.]| |DF1 remaining|[130 MW]|In negotiation|[~$3.25B est.]|[~$217M est.]|[~$54M est.]| |In negotiation|[100 MW]| |[~$2.5B est.]|[~$167M est.]|[~$42M est.]| |Total leased|1,410 MW| |~$36.7B|~$2.45B|~$611M| |Total unleased (confirmed)|[330 MW]| |[~$8.25B est.]|[~$550M est.]|[~$138M est.]| |Grand total (leased + pipeline)|1,740 MW| |~$44.95B|~$3.0B|~$749M|