TLDR
- Applied Digital is offering $2.35 billion in senior secured notes due 2030 to fund data center construction at its Polaris Forge 1 campus in North Dakota.
- The proceeds will specifically finance the construction of two data centers: a 100-megawatt facility (ELN-02) and a 150-megawatt facility (ELN-03).
- The company signed a colocation agreement with AI hyperscaler CoreWeave for an additional 150 MW of critical IT capacity in August 2025.
- Applied Digital has pivoted from Bitcoin mining hosting to AI infrastructure provision, transitioning to what’s called a ‘powershell’ build model.
- The stock showed positive pre-market movement following the announcement, with analysts maintaining Buy ratings despite ongoing financial challenges.
Applied Digital announced Monday that its subsidiary, APLD ComputeCo LLC, plans to issue $2.35 billion in senior secured notes due 2030. The financing will support the construction of new data centers at the company’s North Dakota campus.
Applied Digital Corporation, APLD
The funds will go toward building two facilities at the Polaris Forge 1 campus in Ellendale, North Dakota. The first facility, designated ELN-02, will have 100 megawatts of capacity. The second, ELN-03, will add 150 megawatts.
The Polaris Forge 1 campus has a total planned capacity of 400 megawatts. These two new data centers represent more than half of that total capacity.
Applied Digital has changed its business focus in recent years. The company previously operated as a Bitcoin mining hosting provider. Now it concentrates entirely on AI infrastructure provision.
This business model is commonly referred to as a ‘powershell’ build. The approach involves constructing data center capacity for AI hyperscalers and other large-scale computing customers.
CoreWeave Partnership Drives Expansion
In August 2025, Applied Digital signed a colocation agreement with CoreWeave. The deal covers an additional 150 MW of critical IT capacity. CoreWeave operates as an AI hyperscaler focused on GPU-accelerated computing.
The partnership with CoreWeave appears central to Applied Digital’s expansion plans. The 150-megawatt ELN-03 facility aligns with the capacity outlined in that agreement.
CoreWeave has been expanding its own infrastructure to meet growing AI computing demand. The company went public through a NASDAQ listing earlier in 2025.
Market Response and Analyst Outlook
Applied Digital shares rose 3.5% in pre-market trading following the announcement. The stock has shown considerable volatility throughout the year.
Year-to-date, APLD has gained 297.18%. The company’s current market capitalization stands at $8.66 billion. Average trading volume reaches 30.6 million shares.
Analysts maintain a Buy rating on the stock. This reflects confidence in the company’s strategic direction toward AI infrastructure.
The technical sentiment signal also indicates a Buy. However, analysts acknowledge ongoing financial challenges at the company. Cash flow inefficiencies remain a concern.
The senior secured notes carry a 2030 maturity date. This gives Applied Digital a five-year timeline to develop the facilities and generate returns. The company has not disclosed the interest rate or other specific terms of the offering.
Applied Digital operates the data center construction through its subsidiary structure. APLD ComputeCo LLC will be the issuing entity for the notes. The construction timeline for ELN-02 and ELN-03 was not specified in the announcement.
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