Applied Digital Secures $787.5 Million Funding to Advance AI Factory Expansion

New updates have been reported about Applied Digital (PC:APP3Z)

Applied Digital has announced plans to draw an additional $787.5 million from its perpetual preferred equity financing facility with Macquarie Asset Management, aiming to bolster its AI Factory campuses in North Dakota. This funding, expected to be finalized by the end of the month, will significantly enhance the development of the Polaris Forge 1 and Polaris Forge 2 sites. Specifically, $450 million is earmarked for the Polaris Forge 2 campus in Harwood, which has already leased 200 MW of IT capacity to a major U.S.-based hyperscaler, with potential expansion to 1 gigawatt. The remaining $337.5 million will support the Polaris Forge 1 campus in Ellendale, contingent upon the completion of a $2.35 billion senior secured notes offering.

This strategic financial move underscores Applied Digital’s commitment to scaling its high-performance data center platform and strengthening its position in the AI infrastructure sector. CEO Wes Cummins highlighted the importance of this funding in accelerating development and maintaining on-schedule project delivery. The partnership with Macquarie Asset Management is seen as a testament to Applied Digital’s capability to execute large-scale projects efficiently. CFO Saidal Mohmand emphasized that the investment will provide the necessary capital to advance both AI Factory campuses, reinforcing the company’s robust financing model. With these developments, Applied Digital is poised to continue its trajectory as a leading provider of sustainable, high-performance data centers.