Project Overview

Delta Forge 2 is a purpose-built hyperscale AI data center campus developed by Applied Digital in Brookwood, Tuscaloosa County, Alabama. Developed by Applied Digital, the campus is designed to support large-scale AI training and inference workloads, with 210 MW of critical IT capacity and high-density power infrastructure.

The project is backed by a 15-year take-or-pay lease with a U.S.-based, high-investment-grade hyperscale data center, covering approximately USD 5.2 billion in base-term contracted revenue. If all renewal options are exercised, the total 30-year value is estimated at about USD 12.7 billion. 

The agreement makes the company’s contracted portfolio span five AI Factory campuses. It represents 1.4 GW of critical IT load, approximately 2.15 GW of grid-connected utility power. Furthermore, it adds approximately USD 36 billion in total contracted base-term lease revenue, or USD 86 billion if all renewal options are exercised. Approximately 70% of contracted revenue is now backed by U.S. based investment-grade hyperscalers.

Delta Forge 2 will span about 1.26 million square feet across 160 acres of a nearly 1,300-acre site in Brookwood, with the remaining land held as buffer and potential future expansion. Applied Digital says the design is one AI factory building plus generator buildings, with proprietary waterless cooling and high power density for AI training and inference. 

Delta Forge 2 Location

Delta Forge 2 is located in Brookwood, a town in Tuscaloosa County, Alabama, United States. The project is planned along Brookwood Parkway. The campus occupies a large site of approximately 1,300 acres, with about 160 acres designated for the initial development. 

Applied Digital selected the Brookwood site for its access to an Alabama Power substation, available land, and existing fiber connectivity. The location places the project within the broader Birmingham-area data-center market while serving as a major AI infrastructure development in Tuscaloosa County. 

Project Background

Applied Digital builds and leases AI data center campuses. Its portfolio at the June 2026 announcement was five campuses with about 1.4 GW of critical IT load, about 2.15 GW of grid utility power, and about USD 36 billion of base-term contracted lease revenue. About 70 percent of contracted revenue is backed by US investment-grade hyperscalers. 

On 8 June 2026, Applied Digital announced the Delta Forge 2 lease without naming the state. On 20 July, the Alabama Department of Environmental Management issued a construction stormwater permit to APLD BHM-01 LLC, and WBRC reported on it in August; the permit application described a project of about 2 million sq ft. 

Brookwood's mayor confirmed on 2 September that an AI data center was planned. On 24 September, TCEDA approved the abatements and community benefit agreement, and Applied Digital confirmed the project. A first town hall followed on 1 October, and the Brookwood City Council backed the agreement on 6 October. 

Delta Forge 2 Current Status

Delta Forge 2 is currently under pre-construction. The lease for the AI Data Center was signed on 8th June 2026. The Tuscaloosa County Economic Development Authority (TCEDA) approved about USD 314.5 million in tax abatements and a USD 270 million community benefit agreement on 24 September 2026, and the Brookwood City Council backed the agreement on 6 October. The project completion is expected by 2028. 

Stakeholder Details

Delta Forge 2 Cost Details

Project Scope

The following is the Project Scope of Delta Forge 2:

• AI Factory campus: Delta Forge 2 is a purpose-built AI Factory campus designed to support large-scale artificial-intelligence workloads. It is Applied Digital’s fifth AI Factory campus. 
  

• Primary use: The facility is designed for high-density AI training and inference workloads, with infrastructure intended to support the power and cooling demands of hyperscale AI computing. 
  

• Cooling system: The campus will use Applied Digital’s proprietary waterless cooling technology, which is intended to reduce water use while supporting high-power-density computing. 

Project Timeline

Benefits

The following are the benefits of the project:

• Large-scale AI capacity: The project provides 210 MW of critical IT load specifically designed for large-scale AI training and inference workloads. This gives the hyperscaler tenant dedicated, high-density compute capacity for demanding AI applications. 
  

• Long-term revenue certainty: Applied Digital has a 15-year take-or-pay lease with a high-investment-grade U.S. hyperscaler, generating approximately USD 5.2 billion in base-term contracted revenue. If all renewal options are exercised, the 30-year total could reach approximately USD 12.7 billion. 
  

• Repeatable development model: The project applies Applied Digital’s “franchise model,” using a consistent design, construction, and operations approach across campuses. This is intended to enable faster, more repeatable deployment of AI data centers. 
  

• Waterless cooling: Applied Digital’s proprietary waterless cooling technology is integrated into the campus. This is intended to reduce water consumption while supporting the high heat loads associated with AI computing. 
  

• Broader economic impact: Applied Digital states that its site-selection strategy prioritizes communities where long-duration infrastructure investment can create lasting economic impact. The project is expected to expand the local tax base and sustain economic activity over the life of the campus. 

Conclusion

Delta Forge 2 is a 210 MW AI Data Center Facility designed to support large-scale AI training and inference workloads through high-power-density infrastructure and Applied Digital’s proprietary waterless cooling technology. It is a part of the company’s strategy to deploy purpose-built infrastructure for cloud, networking, and AI workloads.

The project is supported by an approximately 15-year take-or-pay lease with a U.S.-based, high-investment-grade hyperscaler, with three five-year renewal options. The base lease term represents approximately USD 5.2 billion in contracted revenue, while the potential 30-year value is approximately USD 12.7 billion if all renewal options are exercised. 

With expected completion by 2028, the project is expected to create local employment opportunities, support construction activity, expand the local tax base, and generate lasting economic impact in the Brookwood community. 

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