Applied Digital Corporation Closes $2.15 Billion Senior Secured Notes Offering to Fund AI Data Center Expansion

Applied Digital Corporation (NASDAQ: APLD) announced the closing of a $2.15 billion offering of 6.750% senior secured notes due 2031 through its subsidiary APLD ComputeCo 2 LLC. The notes were priced at 98% of their face value, with the transaction closing on March 10, 2026. This substantial capital raise represents a significant financial milestone for the company as it continues to expand its data center operations specifically designed for artificial intelligence, networking, and blockchain applications. The offering was conducted as a private placement, sold to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S, with Roth Capital Partners serving as co-manager for the transaction.

The funds from this offering will support Applied Digital's ongoing expansion of its high-performance data center infrastructure, which has been recognized as the Best Data Center in the Americas 2025 by Datacloud. The company specializes in designing, building, and operating sustainably engineered data centers that incorporate proprietary waterless cooling technology and rapid deployment capabilities. This approach allows Applied Digital to deliver secure, scalable compute resources at industry-leading speed and efficiency, particularly for demanding workloads in artificial intelligence and blockchain technologies. The company's innovative Polaris Forge AI Factory model further enhances its value proposition by creating economic opportunities in underserved communities through strategic data center development.

This $2.15 billion financing strengthens Applied Digital's balance sheet and provides the capital necessary to accelerate its growth strategy in the rapidly expanding AI infrastructure market. The company's focus on sustainable engineering practices, including its proprietary waterless cooling system, addresses growing environmental concerns within the data center industry while maintaining the high-performance requirements of modern computing workloads. By combining hyperscale expertise with innovative cooling technologies, Applied Digital positions itself as a competitive player in the data center market, particularly for clients requiring specialized infrastructure for artificial intelligence applications. The successful completion of this substantial debt offering demonstrates investor confidence in the company's business model and growth prospects within the technology infrastructure sector.

Applied Digital's headquarters in Dallas, Texas serves as the operational center for its expanding network of data centers designed to meet the increasing computational demands of artificial intelligence and blockchain technologies. The company's rapid deployment capabilities allow it to respond quickly to market opportunities while maintaining the security and reliability standards required by enterprise clients. More information about the company's operations and services can be found at https://www.applieddigital.com/. This financing represents a strategic move to capitalize on the growing demand for specialized data center infrastructure as artificial intelligence continues to transform multiple industries and create new computational requirements that traditional data centers may struggle to meet efficiently and sustainably.