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Applied Digital & Macquarie: Can Their Financing Model Unlock 1.7 Gigawatts?

Applied Digital, a data center infrastructure company, reported fiscal fourth quarter 2026 results reflecting significant growth in contracted lease revenue and expansion of its AI-focused data center campuses. The company signed leases for five campuses during the quarter, adding approximately $20 billion in long-term contracted revenue and raising total contracted lease value to $36 billion. Their contracted critical IT load now exceeds 1.41 gigawatts, mainly leased to investment-grade hyperscalers across multiple states and regions. Applied Digital continues construction on multiple campuses, including 100 megawatts of Polaris Forge 1 delivered on time and on budget, with expansions underway. Financially, the company recorded total revenues of $258.7 million for the quarter, a 407% increase year-over-year, driven primarily by HPC hosting services. The HPC hosting business generated $203 million in revenue, while the data center hosting segment, focusing on crypto mining operations, contributed $37.3 million in revenue and $12.5 million in operating profit.