Applied Digital Secures Multi-Billion Dollar Backing for AI Data Center Expansion

Applied Digital raises $2.15B via private notes to build a 200MW AI data center in North Dakota, fully pre-leased to Oracle under a 15-year, ~$5B revenue contract.

Applied Digital Corporation has successfully locked in the necessary capital to proceed with a major artificial intelligence infrastructure development in North Dakota. The company raised gross proceeds of $2.15 billion through a private placement of secured notes, clearing the final hurdle for constructing a massive computing facility that is already pre-leased to a significant technology partner.

Strong Foundation with Long-Term Tenant

The financing is underpinned by a robust operational agreement. The entire 200-megawatt (MW) capacity of the planned facility is subject to a 15-year lease with Oracle. This long-term contract is projected to generate approximately $5 billion in revenue for Applied Digital over its full duration, providing a clear and substantial income stream for the project.

The capital was raised by the company’s subsidiary, APLD ComputeCo 2 LLC, which completed the private bond placement. The notes carry an interest rate of 6.75% and mature in 2031. They were issued at 98% of their principal value and are secured by the assets of the subsidiary.

Funding Designated for "Polaris Forge 2" Campus

The newly acquired funds are earmarked specifically for developing the "Polaris Forge 2" campus in Harwood, North Dakota. This site is designed to deliver 200 MW of capacity, engineered to meet the intensive demands of artificial intelligence workloads and high-performance computing. With this financing round finalized, construction of the initial 200 MW phase can proceed on schedule to bring the capacity online for Oracle.

This project represents just one part of a broader strategic build-out. While the first campus, Polaris Forge 1, is fully leased to CoreWeave for 400 MW, the Polaris Forge 2 site has a long-term roadmap to scale to a total capacity of 1,000 MW. The company strategically selects locations like North Dakota for their favorable climate conditions and access to stable, cost-effective power resources.

Investor Sentiment and Financial Positioning

The market responded favorably to the initial announcement of the financing terms last week. Applied Digital's share price advanced by 9.56% in a single trading session following the news.

Although the bond issuance meaningfully increases the company's debt level, the capital is directly allocated to value-creating projects with secured, long-term revenue attached. The financing effectively de-risks the construction phase for this significant expansion of its AI infrastructure portfolio.