Applied Digital Secures Multi-Billion Dollar Funding for AI Infrastructure Push

Applied Digital is accelerating the expansion of its artificial intelligence infrastructure, backed by a major capital raise. The company has arranged debt financing worth billions to fund its next-generation AI data centers, addressing sustained industry demand for specialized computing environments.

A Strategic Shift in Financing

The company’s latest move highlights a strategic pivot toward larger, capital-intensive projects financed through project-specific debt rather than equity issuance. This approach increases leverage but avoids diluting existing shareholders. The financing is earmarked for the construction of the “Polaris Forge 2” AI campus in Harwood, North Dakota, a facility designed for an IT load of 200 megawatts. Applied Digital will provide standard completion guarantees, retaining responsibility for construction timelines and operational commissioning.

Details of the Debt Placement

The capital was secured through a private placement of senior secured notes by subsidiary APLD ComputeCo 2 LLC. The notes total $2.15 billion, carry an interest rate of 6.750%, and mature in 2031. They were issued at 98% of their principal value and are secured by the subsidiary’s assets. The transaction is expected to close on March 10, 2026.

This project follows the company’s recent track record, having previously completed a 100-megawatt data center in Ellendale within its planned budget.

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Locking in Long-Term Energy and Revenue

A critical component of the plan involves securing a stable power supply. In a related development, partner Babcock & Wilcox (B&W) received a $2.4 billion order for a power plant project within the last 48 hours. This facility is slated to provide 1.2 gigawatts of capacity to support Applied Digital’s growing network of AI sites.

To help overcome one of the industry’s most significant bottlenecks—reliable energy access—Applied Digital has entered a support guarantee agreement for this power project. This agreement grants the company a 10% equity interest in Base Electron, ensuring long-term power for the North Dakota site and potential future expansion areas.

On the revenue side, the economic foundation for Polaris Forge 2 is a 15-year lease agreement with Oracle. This long-term contract provides a stable outlook for refinancing the 200-megawatt facility.

With capital now secured and energy partnerships in place, the company’s focus shifts to the physical construction in Harwood to bring the new capacity online as scheduled.