Dallas, TX – June 9, 2026 – Applied Digital Corporation (NASDAQ: APLD), a prominent player in the data center industry specializing in high-performance, sustainably engineered facilities for artificial intelligence (AI) and blockchain workloads, has made a significant announcement regarding its future expansion plans. The company revealed that its subsidiary, APLD ComputeCo 3 LLC, intends to offer $1.59 billion of senior secured notes due in 2031 as part of a strategic effort to fund the construction of a new facility at its Polaris Forge 1 campus in Ellendale, North Dakota.

1. Details of the Proposed Offering

The proposed offering of the senior secured notes is expected to be made in a private placement to qualified institutional buyers as per Rule 144A under the Securities Act of 1933, and to non-U.S. persons under Regulation S. The offering is contingent upon market conditions and other factors, and there is no guarantee that it will be completed.

APLD ComputeCo 3 plans to utilize the net proceeds from this offering for several key initiatives:

Construction of ELN-04: The primary use of proceeds will be to fund the construction and associated costs for the fourth building (designated as ELN-04) at the Polaris Forge 1 campus, which will support 150 megawatts of critical IT load.

Debt Repayment: A portion of the funds will be allocated to repay the existing principal balance and accrued interest under a Credit and Guaranty Agreement with Goldman Sachs Bank USA, which has provided a bridge loan facility.

Debt Service Reserves: The company will also establish debt service reserves to ensure financial stability and liquidity.

Transaction Expenses: Additional funds will cover transaction-related expenses associated with the offering.

2. Security and Guarantees

The senior secured notes will be fully and unconditionally guaranteed by APLD ComputeCo 3's existing and future subsidiaries, including APLD ELN-04 HoldCo LLC, APLD ELN-04 LLC, and APLD ELN-04 LandCo LLC. The offering will be secured by first-priority liens on substantially all assets of APLD ComputeCo 3 and the Guarantors, with certain exclusions. Additionally, the equity interests of APLD ComputeCo 3 held by its parent company, APLD HPC Holdings 2 LLC, will also secure the notes.

Applied Digital has committed to providing a customary completion guarantee for the ELN-04 project, ensuring that APLD ComputeCo 3 receives the necessary funding to complete the construction on schedule.

3. Market Implications

The announcement of this offering reflects Applied Digital's aggressive expansion strategy within the rapidly growing sector of data centers, particularly for AI and blockchain applications. By securing substantial funding, the company is positioning itself to enhance its infrastructure and meet the increasing demand for high-performance computing solutions.

The Polaris Forge AI Factory model, recognized as the Best Data Center in the Americas in 2025 by Datacloud, has already demonstrated Applied Digital's commitment to sustainable practices and economic development in underserved communities. The expansion through the new building is expected to further bolster the company's reputation and operational capabilities.

4. Conclusion

As Applied Digital moves forward with its proposed offering of senior secured notes, the market will be closely watching the company's execution of its expansion plans at Polaris Forge 1. With the growing importance of data centers in the digital economy, this strategic initiative could mark a significant milestone in the company's trajectory, enabling it to enhance its competitive edge in the industry.

Original press release