Applied Digital’s largest tenant by contract value is not CoreWeave. Its annual report for the year to 31 May 2026 lists about $36.2 billion of contracted revenue across five campuses; CoreWeave’s 400 MW at Polaris Forge 1 account for about $11.0 billion of it, or 30%, by our arithmetic.
One unnamed hyperscaler, which the filing calls the “second” investment-grade hyperscaler, holds the Delta Forge 1 and Polaris Forge 3 leases: 600 MW and about $15.0 billion, or 41%. Bloomberg reported on 14 November that Applied Digital has asked tenants like Oracle and Meta for guarantees to secure power, as we reported earlier on 15 November.
Business Pill · Concentration Explained
An evergreen Business Engineer explainer on concentration, when a few big pieces make the total. It teaches the general idea only and does not discuss Applied Digital.
The key insight: As we read it, Applied Digital’s contracted revenue rests on very few counterparties: two tenants, CoreWeave and one unnamed hyperscaler, account for about 72% of the roughly $36.2 billion in its 10-K lease table, by our arithmetic, and Bloomberg reports the company asks tenants for guarantees to secure power before leases are final.
The 10-K, filed on 29 July, sets out each campus with its “Anchor Tenant”, load, term and value. Every lease runs for a 15-year base term, and the totals exclude renewal options. The filing says each lease is structured “on a take-or-pay basis” and is non-cancellable.
Polaris Forge 1 is CoreWeave’s, at 400 MW and about $11.0 billion. Polaris Forge 2 is leased to an investment-grade hyperscaler, 200 MW for about $5.0 billion. Polaris Forge 3 and Delta Forge 1 are each 300 MW and about $7.5 billion. Delta Forge 2, signed on 5 June, is 210 MW for about $5.2 billion.
The filing names no tenant other than CoreWeave. It says the Polaris Forge 3 lease of 20 May is with “the same U.S.-based investment-grade hyperscaler” that signed the two Delta Forge 1 leases in April. It does not say whether the Delta Forge 2 tenant is one of the other hyperscalers.
Applied Digital’s contracted lease revenue by tenant over the 15-year base terms, from the lease portfolio table in its 10-K for the year ended 31 May 2026. Shares are our arithmetic on the filing’s approximate values; hyperscaler tenants are unnamed.
The Numbers, by Our Arithmetic
Share of contract value. CoreWeave about $11.0 billion of $36.2 billion, 30.4%. The second hyperscaler $15.0 billion, 41.4%. The Polaris Forge 2 tenant 13.8% and the Delta Forge 2 tenant 14.4%. Hyperscalers together hold $25.2 billion, 69.6%.
Share of megawatts. CoreWeave 400 of 1,410 MW, 28.4%; the second hyperscaler 600 MW, 42.6%.
Value per megawatt per year. Spread over the 15-year base term, CoreWeave’s leases come to about $1.83 million per MW a year, against about $1.67 million for the Polaris Forge 2, Polaris Forge 3 and Delta Forge 1 leases and $1.65 million for Delta Forge 2. CoreWeave’s rate is about 10% higher. The inputs are the filing’s rounded values, so these rates are approximate.
What CoreWeave Gave and Got
The CoreWeave leases came with equity. The 10-Q for the quarter to 31 August says Applied Digital issued CoreWeave warrants for up to 13,062,521 and 8,393,611 shares “In connection with certain data center leases with CoreWeave”, at $7.19 and $10.75 a share; 21,455,832 warrant shares remained outstanding at 31 August.
The 10-K also describes credit support from the tenant side. After an internal restructuring at CoreWeave on 30 March, two leases moved to a CoreWeave subsidiary, and “CoreWeave is obligated to provide a letter of credit in the amount of $50 million to secure obligations under the ELN-02 Lease”.
Revenue is already concentrated. The 10-Q shows three unnamed customers at 56%, 21% and 11% of revenue in the quarter, 88% together by our arithmetic. The filing does not say which customer is which.
As we read the table, CoreWeave’s leases carry the highest value per megawatt: about $1.83 million per MW a year, against about $1.65 million to $1.67 million for the leases the filing attributes to hyperscalers, by our arithmetic. CoreWeave also received warrants for more than 21 million shares with its leases.
Applied Digital 10-K, fiscal year ended 31 May 2026
“As of May 31, 2026, we had executed long-term leases representing approximately 1,410 MW of contracted critical IT load across five campuses, representing approximately $36.2 billion of total contracted revenue over the initial 15-year base lease terms.”
Three Implications
FOR TENANTS The 10-K says each lease is non-cancellable and that a termination for convenience would require payment of the full remaining contractual value.
FOR LENDERS About 41% of the contract value, by our arithmetic, sits with one hyperscaler across two campuses, Delta Forge 1 and Polaris Forge 3, both under construction per the 10-Q.
FOR THE POWER REQUEST Bloomberg reports that Applied Digital asks tenants such as Oracle and Meta for guarantees to secure power; the filings name neither company as a tenant.
The framework puts the build-out’s risk in one line: “The $1T capex cycle is being underwritten by a $1T concentrated demand commitment from two counterparties whose combined free cash flow is deeply negative.”
As we read it, Applied Digital’s lease book is the same pattern one layer down: two tenants carry about 72% of its contracted revenue, by our arithmetic. The framework predates the filing and does not discuss Applied Digital.
Each tenant’s share of Applied Digital’s contracted megawatts and contract value, from the lease portfolio table in its 10-K. The shares and per-megawatt rates are our arithmetic on the filing’s approximate values.
What Is Not Established
The 10-K and 10-Q do not name Oracle, Meta or any hyperscaler tenant, so we do not match Bloomberg’s names to any campus. The lease values are the filing’s approximate figures as of 31 May 2026 and exclude renewal options.
The shares and per-megawatt rates are ours. They do not account for differences in delivery dates, fit-out terms or rent escalation, which the table does not give lease by lease.
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Applied Digital’s 10-K lists about $36.2 billion of contracted lease revenue. CoreWeave holds about 30% of it, and one unnamed hyperscaler with two campuses holds about 41%, by our arithmetic. CoreWeave’s leases work out to about $1.83 million per MW a year, about 10% above the hyperscaler leases.
A note on sourcing. Every lease, tenant and revenue-concentration figure comes from Applied Digital’s 10-K filed on 29 July 2026 and its 10-Q filed on 7 October 2026, which we read in full; the lease values are the 10-K’s approximate figures. The shares of value and megawatts and the per-megawatt rates are our arithmetic. The tenant guarantee request is as reported by Bloomberg on 14 November 2026, which we read through Techmeme’s summary; the filings do not name Oracle or Meta.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
