Applied Digital Raises $2.15B via 6.75% Notes to Build 200MW AI Campus
Applied Digital Corp. priced $2.15 billion of 6.750% senior secured notes due 2031 at 98% of face value to fund its Polaris Forge 2 project. Proceeds will build 200 MW of IT capacity and underwrite a $2.4 billion, 1.2 GW power generation project for Applied Digital’s AI Factory campuses.
1. Senior Secured Notes Offering
Applied Digital’s subsidiary APLD ComputeCo 2 LLC issued $2.15 billion of 6.750% senior secured notes due 2031 at 98% of face value. The notes carry first-priority liens on most assets of APLD ComputeCo 2 and its subsidiaries.
2. Polaris Forge 2 Project
Proceeds from the offering will fund development of the Polaris Forge 2 campus in Harwood, North Dakota, enabling construction of 200 MW of critical IT capacity to expand AI computing capabilities.
3. Power Infrastructure Project
Babcock & Wilcox Enterprises has received notice to proceed on a $2.4 billion, 1.2 GW power generation project for Base Electron, an independent power producer backed by Applied Digital, to supply electricity to its AI Factory campuses.
4. Closing Timeline and Conditions
The company expects to close the notes offering by March 10, 2026, subject to customary conditions, securing long-term financing for its data center and power infrastructure expansions.