Macquarie to Invest Up to USD 5 Billion in Applied Digital’s AI Data Centers

Macquarie to Invest Up to USD 5 Billion in Applied Digital's AI Data Centers
Applied Digital Corporation (Applied Digital) said it has entered into an agreement with Macquarie Asset Management (MAM) for funding of up to USD 5 billion to enable high performance computing (HPC) growth. The financing will accelerate the development of Applied Digital’s data center projects, including the 400 MW Ellendale HPC Campus.

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Key Terms of the Financing Agreement

Under the agreement, Applied Digital subsidiary APLD HPC Holdings LLC (APLDH) will issue equity units, with MAM committing USD 2.25 million per megawatt (MW) of leased capacity. This arrangement could provide up to USD 900 million to complete the full 400 MW build-out of the Ellendale project, repay approximately USD 180 million in bridge debt, recover USD 300 million in equity investments, and fund operational and transaction costs. Additionally, MAM holds a right of first refusal on USD 4.1 billion of Applied Digital’s future data center funding over a 30-month period.

“Applied Digital has a differentiated strategy with access to a unique near-term power portfolio across North America in markets attractive for computing needs which address the most demanding AI and other HPC applications at scale,” said Anton Moldan, Senior Managing Director of Macquarie Asset Management. “The significant progress at the Ellendale HPC campus makes this a very compelling opportunity for us as well as for potential hyperscale customers.”

Vision for HPC and AI Infrastructure

“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. At today’s build costs, we will have a significant portion of the equity needed to construct over 2.0 GW of HPC data center capacity, including our Ellendale HPC Campus,” said Wes Cummins, Chairman and CEO of Applied Digital.