Big ideas need big energy—and the technology to take them to the next level. Applied Digital is stepping up to the plate with a $5 billion boost, backing its bold plans for expanded, energy-smart data center infrastructure. This new financing will help Applied Digital in its mission to solve real-world challenges in AI and high-performance computing while keeping sustainability front and center.
The company’s recent partnership with Macquarie Asset Management (“MAM”), through investment vehicles managed by MAM’s funds, secures perpetual preferred equity financing that will help Applied Digital build on its vision. A significant portion of this funding will go toward the full buildout of the Ellendale HPC Campus, a 400-megawatt facility designed to meet the growing demand for high-performance computing (HPC). Powered by AI applications and other intensive workloads, this campus represents a critical piece of the company’s strategy.
Here’s how the numbers stack up: MAM will invest $2.25 million for every megawatt of leased data center capacity, with the commitment reaching up to $900 million. This isn’t just about funding—it’s about Applied Digital taking concrete steps to make its operations more efficient and effective. The funds will also allow the company to pay down existing bridge debt of $180 million and recover $300 million in equity already put into the Ellendale campus.
But there’s more to this financing arrangement than immediate funds. MAM has negotiated a right of first refusal on further funding for future HPC projects, potentially contributing up to $4.1 billion over the next 30 months. It’s a strategic partnership that positions Applied Digital to go further, faster.
“We believe this expanded relationship with MAM positions Applied Digital for significant growth in the industry, establishing Applied Digital as one of the fastest-growing HPC data center owners, operators and developers in the United States.” — Wes Cummins, chairman and CEO of Applied Digital.
One of the standout aspects of Applied Digital’s growth strategy is how it plans to combine scale with sustainability. The Ellendale campus, for example, will emphasize the use of stranded power—energy generated in locations with minimal transmission infrastructure. Along with this resourceful approach, the facility will rely on closed-loop liquid cooling systems, a technology designed to keep power usage low even as data demands skyrocket.
The financing secured through this deal gives Applied Digital the equity groundwork for over 2 gigawatts of additional HPC capacity. By making bold moves and aligning its growth with smart energy use, Applied Digital is carving out a vision for the future of HPC infrastructure that is driven by practicality and sustainability.
Read the full announcement here and visit www.applieddigital.com/ to learn more about Applied Digital.