How do you build the kind of infrastructure that supports innovation at the highest level? For Applied Digital, it starts with a $375 million partnership with SMBC. With funds already flowing toward the first phase of the Ellendale HPC Campus, the company’s strategy demonstrates how calculated investments create the foundation for breakthroughs in AI, HPC, and beyond.

This financing represents more than a balance sheet win for Applied Digital—it’s a major milestone in their pursuit of next-generation digital infrastructure. The funds were partially used to settle existing obligations under a senior secured note with Macquarie Capital. The remainder is already being channeled into the construction of two data center buildings at the Ellendale site. The campus is designed to meet the demands of clients tackling the most complex workloads, including AI development, machine learning, and blockchain technologies.

“We are excited to partner with SMBC,” said Saidal Mohmand, Chief Financial Officer of Applied Digital. “This financing enables us to advance the development of our Ellendale HPC Campus, and we look forward to strengthening our relationship with SMBC as we continue scaling our HPC data center platform.”

A Strategic Approach to Growth

The importance of the Ellendale project lies not only in the infrastructure itself but also in what it represents—a vision of sustainable, scalable design tailored for a fast-evolving digital landscape. This financing will enable Applied Digital to break ground while they secure permanent project financing, ensuring that long-term plans remain aligned with execution without diluting shareholder equity.

Nick Donias, director of Infrastructure Finance at SMBC Americas, emphasized the significance of this partnership. “Structuring and leading this landmark transaction is a great start to a partnership with Applied Digital. We look forward to continuing to work with them as they build out the next generation of hyperscale data centers.”

Designed for Tomorrow

Purpose-built to serve applications with high-intensity resource demands, the Ellendale HPC Campus is one piece of a larger strategy for Applied Digital. These facilities will cater to everything from large-scale AI model training to the secure and efficient hosting of blockchain and HPC workloads. The design approach prioritizes performance while maintaining sustainability, integrating elements like efficient cooling and power management to support clients’ rigorous performance metrics.

Applied Digital’s development plans mirror the needs of its customers—forward-thinking companies at the forefront of innovation. The Ellendale site is engineered to deliver reliable and scalable solutions, ensuring workloads can expand along with technological advancements.

What Lies Ahead

It’s clear that Applied Digital is laying the groundwork for sustained progress. For industries reliant on compute power, what’s under construction at Ellendale is the foundation for the next wave of technological progress. Applied Digital’s approach ensures that vision and execution remain in sync, delivering solutions designed to meet both present and future demands.

Read the full announcement here and visit www.applieddigital.com/ to learn more about Applied Digital.