Applied Digital Secures $787.5 Million for AI Factory Expansion

On November 12, 2025, Applied Digital Inc. (NASDAQ: APLD) announced a significant advancement in its funding strategy, revealing plans to draw an additional $787.5 million from Macquarie Asset Management. This funding is part of a previously disclosed perpetual preferred equity financing facility that has a total capacity of up to $5.0 billion, aimed at bolstering the company’s AI infrastructure.

The newly secured funds will primarily support the ongoing development of Applied Digital’s Polaris Forge 1 and Polaris Forge 2 AI Factory campuses located in North Dakota. The anticipated funding draw is expected to be completed by the end of the month, paving the way for a more robust operational capacity in the rapidly growing AI sector.

Of the total $787.5 million, $450 million will be specifically dedicated to the completion of Polaris Forge 2, which has already leased 200 MW of critical IT capacity to a U.S.-based investment-grade hyperscaler. This client also holds the first right of refusal for an additional 800 MW at the site, indicating strong demand and potential future growth, with the site boasting a total expansion capability of up to 1 gigawatt.

The remaining $337.5 million will be allocated to Polaris Forge 1 in Ellendale, North Dakota. This investment is contingent upon the closing of the company’s previously announced $2.35 billion senior secured notes offering, as well as other customary conditions. This capital will not only facilitate the development of the 400-MW campus but also cover general administrative expenses and transaction costs.

Wes Cummins, Chairman and CEO of Applied Digital, expressed confidence in the company’s direction, stating, “This funding underscores the continued execution of our AI infrastructure strategy and the confidence in Applied Digital’s ability to deliver at scale.” He highlighted the recent achievement of a Ready-for-Service milestone for the first data hall at Polaris Forge 1, emphasizing that both campuses remain on schedule, which reflects the company’s commitment to on-time delivery.

Anton Moldan, Senior Managing Director of Macquarie Asset Management, noted the strength of Applied Digital's position as a trusted partner to hyperscale customers. “We are pleased to deepen our partnership with Applied Digital as it scales its high-performance compute data center platform,” he said, underscoring Macquarie's experience as a major player in the data center market.

Saidal Mohmand, Chief Financial Officer of Applied Digital, reiterated the significance of the ongoing funding in driving progress across their large-scale AI Factory platform. He stated that these investments would reinforce the strength of their financing model and execution strategy, further aiding the completion of both Polaris Forge 1 and Polaris Forge 2.

Notably, up to half of the $337.5 million allocated to Polaris Forge 1 may be used for the second building on the campus, although any unused portion is expected to be directed towards other data center projects and general corporate purposes.

In a related move, on November 10, 2025, Applied Digital entered into a loan and security agreement with First National Bank of Omaha. This agreement allows for revolving loans and letters of credit up to $65 million, secured by the company’s assets. The loan will accrue interest at a rate of SOFR plus 2.75% per annum, further enhancing Applied Digital's liquidity position as it continues to expand its operations.

Applied Digital’s latest funding announcement marks a pivotal moment in its ambitious plans to establish itself as a leader in the high-performance data center space, particularly for AI workloads. With the support of Macquarie Asset Management and a robust operational strategy, the company appears well-positioned to accelerate its growth and capitalize on the increasing demand for AI infrastructure. As it continues to make strides in the development of its Polaris campuses, Applied Digital remains a notable entity in the tech landscape, poised for significant impact in the coming years.