{
  "title": "Applied Digital AI Data Center Economics: Campus Yields and Capital Stack",
  "path": "/research/applied-digital-ai-data-center-economics",
  "publishedAt": "2026-09-25",
  "updatedAt": null,
  "dataAsOf": "2026-09-25",
  "version": "1.0",
  "portfolio": {
    "contractedCampuses": 5,
    "contractedMw": 1410,
    "contractedRevenueUsd": 36200000000,
    "detailedEconomicsCampuses": 3,
    "detailedEconomicsMw": 900,
    "detailedEconomicsRevenueUsd": 23500000000,
    "detailedEconomicsMwCoveragePct": 63.83,
    "detailedEconomicsRevenueCoveragePct": 64.92,
    "detailedAnnualContractedRevenueUsd": 1566666666.67,
    "detailedAnnualSiteNoiUsd": 1357000000,
    "detailedMidpointDevelopmentCostUsd": 10800000000,
    "detailedSiteNoiYieldOnCostPct": {
      "lowCase": 11.2,
      "midpoint": 12.56,
      "highCase": 14.18
    }
  },
  "projects": [
    {
      "id": "polaris-forge-1",
      "name": "Polaris Forge 1",
      "mw": 400,
      "contractedRevenueUsd": 11000000000,
      "baseTermYears": 15,
      "siteNoiMarginPct": 88,
      "siteNoiMarginRangePct": [85, 91],
      "capexPerMwUsdRange": [11000000, 13000000],
      "annualContractedRevenueUsd": 733333333.33,
      "annualContractedRevenuePerMwUsd": 1833333.33,
      "annualSiteNoiUsd": 645333333.33,
      "annualSiteNoiPerMwUsd": 1613333.33,
      "developmentCostUsd": {
        "low": 4400000000,
        "midpoint": 4800000000,
        "high": 5200000000
      },
      "siteNoiYieldOnCostPct": {
        "lowCase": 11.99,
        "midpoint": 13.44,
        "highCase": 15.17
      }
    },
    {
      "id": "polaris-forge-2",
      "name": "Polaris Forge 2",
      "mw": 200,
      "contractedRevenueUsd": 5000000000,
      "baseTermYears": 15,
      "siteNoiMarginPct": 86,
      "siteNoiMarginRangePct": [83, 89],
      "capexPerMwUsdRange": [11000000, 13000000],
      "annualContractedRevenueUsd": 333333333.33,
      "annualContractedRevenuePerMwUsd": 1666666.67,
      "annualSiteNoiUsd": 286666666.67,
      "annualSiteNoiPerMwUsd": 1433333.33,
      "developmentCostUsd": {
        "low": 2200000000,
        "midpoint": 2400000000,
        "high": 2600000000
      },
      "siteNoiYieldOnCostPct": {
        "lowCase": 10.64,
        "midpoint": 11.94,
        "highCase": 13.48
      }
    },
    {
      "id": "delta-forge-1",
      "name": "Delta Forge 1",
      "mw": 300,
      "contractedRevenueUsd": 7500000000,
      "baseTermYears": 15,
      "siteNoiMarginPct": 85,
      "siteNoiMarginRangePct": [82, 88],
      "capexPerMwUsdRange": [11000000, 13000000],
      "annualContractedRevenueUsd": 500000000,
      "annualContractedRevenuePerMwUsd": 1666666.67,
      "annualSiteNoiUsd": 425000000,
      "annualSiteNoiPerMwUsd": 1416666.67,
      "developmentCostUsd": {
        "low": 3300000000,
        "midpoint": 3600000000,
        "high": 3900000000
      },
      "siteNoiYieldOnCostPct": {
        "lowCase": 10.51,
        "midpoint": 11.81,
        "highCase": 13.33
      }
    }
  ],
  "securedDebtComparisons": [
    {
      "projectId": "polaris-forge-1",
      "securedNotePrincipalUsd": 3940000000,
      "noteComponents": [
        {"principalUsd": 2350000000, "couponPct": 9.25},
        {"principalUsd": 1590000000, "couponPct": 7}
      ],
      "principalWeightedCouponPct": 8.34,
      "annualStatedCouponInterestUsd": 328675000,
      "midpointSiteNoiYieldOnCostPct": 13.44,
      "yieldMinusWeightedCouponPctPoints": 5.1,
      "siteNoiToStatedCouponInterestX": 1.96
    },
    {
      "projectId": "polaris-forge-2",
      "securedNotePrincipalUsd": 2150000000,
      "noteComponents": [
        {"principalUsd": 2150000000, "couponPct": 6.75}
      ],
      "principalWeightedCouponPct": 6.75,
      "annualStatedCouponInterestUsd": 145125000,
      "midpointSiteNoiYieldOnCostPct": 11.94,
      "yieldMinusWeightedCouponPctPoints": 5.19,
      "siteNoiToStatedCouponInterestX": 1.98
    }
  ],
  "macquariePreferred": {
    "fundedAsOf2026_05_31Usd": 1825000000,
    "annualDividendRatePct": 12.75,
    "compounding": "semiannual",
    "minimumMoic": 1.8,
    "minimumMoicCertainLiquidityEvents": 2,
    "mamFullyDilutedCommonOwnershipPct": 13.5,
    "baseRateAccretionSeries": [
      {"year": 0, "accretedMultiple": 1, "minimumMoic": 1.8},
      {"year": 1, "accretedMultiple": 1.1316, "minimumMoic": 1.8},
      {"year": 2, "accretedMultiple": 1.2804, "minimumMoic": 1.8},
      {"year": 3, "accretedMultiple": 1.4489, "minimumMoic": 1.8},
      {"year": 4, "accretedMultiple": 1.6395, "minimumMoic": 1.8},
      {"year": 5, "accretedMultiple": 1.8552, "minimumMoic": 1.8}
    ],
    "yearsUntilBaseRateAccretionReaches1_8x": 4.76,
    "fiveYearBaseRateAccretedMultiple": 1.8552,
    "boundary": "The accretion calculation assumes the 12.75% base preferred rate compounds semiannually with no cash distributions, redemptions, rate step-ups, trigger-event increases, or value assigned to Macquarie common equity. It is a financing-cost illustration, not a forecast of the actual redemption amount."
  },
  "methodology": {
    "annualRevenue": "Base-term contracted revenue divided by 15 years.",
    "midpointDevelopmentCost": "Contracted MW multiplied by $12M/MW, the midpoint of management's $11M-$13M/MW anticipated capex range.",
    "midpointSiteNoi": "Annual contracted revenue multiplied by management's midpoint expected site NOI margin.",
    "yieldRange": "Low case pairs the low end of management's site NOI margin range with $13M/MW capex. High case pairs the high end with $11M/MW capex. These are mechanical scenario endpoints, not confidence intervals.",
    "debtComparison": "Stated secured-note coupons are compared with midpoint site NOI yield on total development cost. The site-NOI-to-coupon-interest ratio divides estimated annual site NOI by annual stated coupon interest on disclosed note principal. It is not DSCR and excludes amortization, issue discounts, fees, reserves, preferred distributions, corporate costs, and other financing claims.",
    "portfolioBoundary": "Project-level site NOI margins and $11M-$13M/MW anticipated capex are disclosed for Polaris Forge 1, Polaris Forge 2, and Delta Forge 1. The study does not impute those assumptions to Polaris Forge 3 or Delta Forge 2."
  },
  "sources": [
    {
      "id": "apld-fy2026-10k",
      "title": "Applied Digital fiscal 2026 Form 10-K",
      "publisher": "Applied Digital / U.S. Securities and Exchange Commission",
      "url": "https://www.sec.gov/Archives/edgar/data/1144879/000114487926000048/apld-20260531.htm",
      "asOfDate": "2026-05-31"
    },
    {
      "id": "apld-2026-investor-presentation",
      "title": "Applied Digital 2026 investor presentation",
      "publisher": "Applied Digital / U.S. Securities and Exchange Commission",
      "url": "https://www.sec.gov/Archives/edgar/data/1144879/000114487926000036/apld_invxinvestorpresent.htm",
      "asOfDate": "2026-04-23"
    },
    {
      "id": "apld-pf2-notes-8k",
      "title": "Polaris Forge 2 senior secured notes Form 8-K",
      "publisher": "Applied Digital / U.S. Securities and Exchange Commission",
      "url": "https://www.sec.gov/Archives/edgar/data/1144879/000149315226009538/form8-k.htm",
      "asOfDate": "2026-03-10"
    },
    {
      "id": "apld-pf1-building4-notes-8k",
      "title": "Polaris Forge 1 Building 4 senior secured notes Form 8-K",
      "publisher": "Applied Digital / U.S. Securities and Exchange Commission",
      "url": "https://www.sec.gov/Archives/edgar/data/1144879/000149315226028899/form8-k.htm",
      "asOfDate": "2026-06-16"
    },
    {
      "id": "apld-q4-fy2026-release",
      "title": "Applied Digital fiscal 2026 fourth-quarter earnings release",
      "publisher": "Applied Digital / U.S. Securities and Exchange Commission",
      "url": "https://www.sec.gov/Archives/edgar/data/1144879/000114487926000044/apldq426earningsreleaseasf.htm",
      "asOfDate": "2026-07-27"
    }
  ]
}