The deal sees Applied Digital repay an existing credit facility with CIM Group while securing new, lower-cost financing which it plans to use to support the development of projects like its data centre site in Ellendale, North Dakota.
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“This financing improves our cost of capital for the Ellendale project and provides greater flexibility to support other growing areas of our business,” said Wes Cummins, CEO of Applied Digital. “The new structure removes the parent guarantee and liens from non-HPC entities, reflecting the value we’ve created through our previous financings and project execution.”
Applied Digital is building a 100 MW campus in Ellendale designed to support intense AI and HPC workloads.
The company broke ground on the 342,000-square-foot facility in October 2023. The data centre will boast multi-stories and is designed to leverage high-density liquid-cooled racks.
“We believe this partnership will not only keep our Ellendale buildout on track but may also open the door to future opportunities with Macquarie as we look to scale our projects and expand into even larger endeavours,” Cummins said.
“We believe this partnership will not only keep our Ellendale buildout on track but may also open the door to future opportunities with Macquarie as we look to scale our projects and expand into even larger endeavours,” Cummins added.
Joshua Stevens, associate director of the commodities and global markets business at Macquarie Group said: “We are proud to assist Applied Digital in this refinancing and look forward to supporting the continued development of its innovative Ellendale project, as well as future facilities that will be essential to the advancement of AI.”
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