Applied Digital Secures $300 Million Bridge Loan to Accelerate AI Data Center Development
Applied Digital has obtained a $300 million senior secured bridge loan, led by Goldman Sachs, to accelerate the development of its upcoming 150 MW AI data center, complementing an existing $2.15 billion in notes and a $7.5 billion hyperscaler lease.
Summary
- Applied Digital has secured a $300 million senior secured bridge loan, orchestrated by Goldman Sachs, to finance the construction of a new AI data center campus.
- This financing is secured by project assets, follows standard market terms, and permits early repayment without penalties while the company seeks long-term funding.
- This bridge loan complements the previously arranged $2.15 billion offering of senior secured notes aimed at financing 200 MW of AI infrastructure already leased to Oracle.
Bitcoin mining hosting and cloud services provider Applied Digital has closed a $300 million senior secured bridge loan to aid in the development of a new AI data center, following its April announcement of a 15-year, $7.5 billion lease with an unnamed U.S. investment-grade hyperscaler.
Company reports indicate that the bridge loan will support the ongoing construction of the 150 MW “Building 3” data center at the Polaris Forge 1 campus, part of a broader AI Factory initiative that includes a sizable 430 MW facility at Delta Forge 1.
The loan is backed by project assets and, according to Applied Digital, can be repaid “at any time without penalty,” enabling the company to refinance into longer-term agreements once it obtains permanent financing.
Management has expressed intentions to introduce a corresponding $300 million senior secured revolving credit facility, potentially raising the total new credit lines to $600 million for pre-lease and post-lease development, working capital, and transaction costs across its AI and high-performance computing endeavors.
From Bitcoin Hosting to AI Infrastructure
Applied Digital, which trades on Nasdaq as APLD, initially focused on building and operating data centers for Bitcoin and cryptocurrency mining clients, with 106 MW and 180 MW facilities in Jamestown and Ellendale, North Dakota, expected to run at full capacity by late 2025.
In March, the company priced $2.15 billion in senior secured notes through its APLD Compute 2 subsidiary, informing investors that the funds would be allocated for “the development and construction of 200 megawatts of essential IT load” at an AI data center in North Dakota, leased to Oracle under a 15-year agreement valued at approximately $5 billion.
The newly secured bridge loan enhances that financing arrangement, providing upfront capital for the 150 MW expansion of Polaris Forge 1 while Applied Digital works with lenders to establish a long-term solution that aligns with the 15-year terms of its hyperscaler leases.
A recent crypto.news update highlighted that the $7.5 billion AI campus lease provides Applied Digital with revenue visibility through 2041, aiding in the integration of project-financing-style debt.
Additionally, another crypto.news analysis noted that the company’s dual approach of a $300 million bridge and $300 million revolving credit aims to “mitigate development risk” as it transitions from crypto hosting to comprehensive AI infrastructure.
A separate crypto.news report emphasized how a prior development loan from Macquarie helped finance early-stage AI factory campuses, a strategy now being scaled up with Goldman Sachs and a broader bank syndicate.