# Applied Digital Asks Oracle and Meta for Multi-Billion-Dollar Guarantees Before New Leases

> Applied Digital wants multi-billion-dollar parent guarantees from Oracle and Meta before signing new data-centre leases.

- Published: 2026-11-15T07:04:46+00:00
- Section: Partnerships
- Author: News Desk
- URL: https://newsforagent.com/news/2026-11-15/applied-digital-oracle-meta-power-guarantees
- Source: [Dealroom.co](https://dealroom.co/news/172772-applied-digital-demands-billions-in-power-guarantees-from-oracle-meta/)

## Key takeaways

- Applied Digital has asked Oracle and Meta for multi-billion-dollar parent guarantees before signing new data-centre leases.
- Applied Digital president Jason Zhang said most new sites require the operator to build power and transmission lines itself.
- Applied Digital is seeking case-by-case guarantees from Nvidia and Advanced Micro Devices to backstop utility interconnections.

Applied Digital has asked its largest tenants, including Oracle and Meta, for multi-billion-dollar parent guarantees before it signs new data-centre leases, [Dealroom.co](https://dealroom.co/news/172772-applied-digital-demands-billions-in-power-guarantees-from-oracle-meta/) reported. The backstops lock in power access before paperwork closes, and the operator has imposed them since at least last year.

## Applied Digital's Guarantee Terms for Oracle and Meta

Applied Digital wants a tenant mix of 70% investment-grade to 30% non-investment-grade, and it has capped capacity for lower-rated firms such as CoreWeave. The company is also seeking case-by-case guarantees from Nvidia and Advanced Micro Devices to backstop utility interconnections.

Jason Zhang, president of [Applied Digital](https://akta.pro/company-profiles/000005p/applied-digital), described the power burden that sits behind the requests. "With most new sites, you have to build the power and transmission lines yourself," Zhang told Bloomberg.

The obligations are already accumulating. Oracle is carrying a $7 billion letter-of-credit obligation in Wisconsin after a utility raised its credit threshold, and Grid Strategies estimates data centres could pay $35 billion more in transmission charges over the next decade. More than half of US states have moved or considered making data centres carry more of the grid's costs.

## Applied Digital's Contracted Lease Base

Applied Digital designs, builds and operates AI Factory campuses for U.S. investment-grade hyperscaler tenants under long-term take-or-pay leases, according to akta.pro [company records](https://akta.pro/company-data). The records list five campuses representing 1.4 GW of contracted critical IT load and approximately $36 billion in base-term lease revenue, with a revenue estimate of $250 million-$500 million and total funding of $9.4 billion.

In June 2026 the company signed a $5.2 billion, 15-year take-or-pay lease with a U.S. investment-grade hyperscaler at Delta Forge 2, its fifth AI Factory campus, covering 210 MW of critical IT load, with initial operations anticipated to commence in Q1 2028.

## Meta Lease and Louisiana Bonds

In November 2026, TIKR reported that a Louisiana public authority proposed up to $4.6 billion in revenue bonds to fund Applied Digital's Delta Forge 1 AI campus, repayable from Meta's lease, with terms unannounced. In May 2026, Applied Digital announced plans to develop the $3.6 billion Delta Forge 1 campus in Rapides Parish, Louisiana, with 300 megawatts of critical IT load across approximately 300 acres and initial operations expected in mid-2027.

## Delta Forge 2 Operations Date

Applied Digital anticipates initial operations at Delta Forge 2, the 210 MW campus covered by the June 2026 lease, to commence in Q1 2028.

## Companies in this story

- [Applied Digital company profile](https://akta.pro/company-profiles/000005p/applied-digital) · website: https://ir.applieddigital.com
- [AMD company profile](https://akta.pro/company-profiles/000084v/amd) · website: http://www.amd.com
- [NVIDIA company profile](https://akta.pro/company-profiles/000000q/nvidia) · website: https://www.nvidia.com

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