Applied Digital breaks ground on 430-MW Delta Forge 1: construction takeaways for builders
New York - Jan 24, 2026 (market closed). Applied Digital (NASDAQ: APLD) jumped 8.5% Friday to $37.69 after confirming site work has started on Delta Forge 1, a new AI data center campus. The plan calls for 430 MW of utility capacity with operations targeted for mid-2027. Traders head into Monday watching for a signed lease with an investment-grade hyperscaler and fresh financing details.
Why this matters for real estate and construction teams
AI infrastructure has shifted from slide decks to shovel work. The builders that win are the ones who lock utility capacity, secure anchor tenants, and sequence long-lead gear early. Friday's move doesn't create revenue today, but it can move timelines and open bid packets for 2026-2027.
- Utility and substation scope becomes the critical path. Queue position and interconnect milestones will dictate pace more than concrete.
- Pre-leasing with an investment-grade tenant sets spec vs. build-to-suit decisions and helps de-risk financing.
- Supply chain planning now beats change orders later: transformers, switchgear, chillers, liquid-cooling distribution, heat rejection, and generators.
Key site and capacity details
Delta Forge 1 is framed as an "AI Factory" designed for intensive compute. It's slated for 430 MW of utility capacity with up to 300 MW reserved as critical IT load for servers and networking gear.
Elsewhere, Applied Digital operates a 100-MW high-performance computing site at Polaris Forge 1 and is building additional capacity in North Dakota.
Schedule: what's realistic
The company is guiding to mid-2027 initial operations. Hitting that mark likely hinges on interconnect approvals, civil readiness, steel, and delivery windows for high-voltage equipment. Plan around long-lead items that can stretch 60-100 weeks and sequence sitework and shells to stay in front of energization.
Tenant and revenue risk: what to watch next week
- Signed lease with the investment-grade hyperscaler: footprint, term, expansion rights, and handover dates.
- Financing update: clarity on project funding to support procurement, with enough runway to hold schedule.
- Interconnect progress: substation design, transmission upgrades, and any required off-site easements.
- Permitting: water use, heat rejection strategy, and local approvals for construction hours and traffic.
- EPC and GMP status: who's building, contract structure, and escalation protection on steel, copper, and specialty gear.
Market snapshot and sector read-through
APLD traded between $33.22 and $39.00 Friday on ~48.1M shares (vs. ~29.1M prior session). Core Scientific rose 3.8%, and IREN gained 8.4%. Data center real estate names were mixed.
Balance sheet context (as of Nov 30, 2025)
Applied Digital reported $2.3B in cash, cash equivalents, and restricted cash, against $2.6B in debt. Big campuses carry big checks, and lease signings can lag construction. If tenant or funding news underwhelms, Friday's pop can fade just as fast.
Checklist for owners, GCs, and subs
- Grid and substation: confirm queue status, scope for on-site vs. off-site upgrades, and energization windows.
- Site control: acreage for substation, mechanical yards, and equipment laydown; right-of-way for transmission.
- Cooling and water: liquid-cooling distribution, heat rejection design, and water permits (or dry alternatives).
- Procurement: transformer and switchgear orders, generator lead times, fiber routes, CT cabinet packages.
- Labor plan: craft headcount ramp through 2026-2027; align with union/non-union requirements and local incentives.
- Contracts: lock escalation clauses, define alternates for critical gear, and clarify commissioning responsibilities.
What to watch at Monday's open (Jan 26)
- Any 8-K, press release, or client disclosure confirming a lease at Delta Forge 1.
- Financing detail that supports ordering long-lead equipment now, not later.
- Volume and follow-through in APLD; read-across to peers and data center landlords.
Sources and further reading
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