Applied Digital has already answered one question: large computing tenants will sign long leases. The harder part is turning those commitments into dependable base rent while a capital-heavy campus buildout keeps drawing on the balance sheet. The size of the contracted footprint matters, but delivery and rent conversion will determine its economic value.
At May 31, 2026, the company reported roughly 1,410 megawatts under long-term leases across five campuses, tied to about $36.2 billion of contracted revenue over the initial 15-year terms. A recent handoff gives that backlog an operating reference point. On June 30, a 75-megawatt phase reached Ready for Service, lifting live capacity at Polaris Forge 1 to 175 megawatts.
The revenue mix shows why the backlog cannot carry the analysis by itself. Fourth-quarter HPC Hosting revenue included $44.1 million of base rent and $152.4 million from tenant fit-out services. Both reflect activity, but project work does not answer the same economic question as recurring rent. The next update can show whether the rent component is beginning to catch up with the scale of construction.
Balance sheet and customer exposure raise the stakes. Fiscal year-end figures showed $5.0 billion of debt and $4.2 billion of cash, cash equivalents and restricted cash. Because that liquidity total included restricted balances, it is not a clean measure of funds available across the company. One HPC customer accounted for 59% of continuing-operations revenue, while one Data Center Hosting customer accounted for another 25%. With that concentration, acceptance timing and customer decisions can change results quickly.
Applied Digital said fiscal first-quarter 2027 results are due after the market closes on October 7, followed by a 5:00 p.m. Eastern Time conference call. The useful comparisons are recurring base rent, the disclosed delivery windows for Polaris Forge 1 and Polaris Forge 2, and unrestricted liquidity.
Read the full Applied Digital review for the source-bound assessment of operating progress, funding pressure and the evidence still needed.
Market analysis, not personalized investment advice.