U.S. Infrastructure Company Expands AI Data Center with $2 Billion Corporate Bonds

Applied Digital Corporation (APLD), through its subsidiary APLD ComputeCo 3 LLC, has privately placed $1.59 billion of 7% senior secured notes due 2031. Proceeds will fund construction of a 150 MW AI data center in Building ELN-04 at its Polaris Posi 1 campus in North Dakota and repay an existing bridge loan.

These notes carry a first-priority lien on specified subsidiary assets and equity and include strict covenants limiting additional debt and liens, asset sales, cash management, and change-of-control events. A debt service reserve account of approximately $81 million has also been established to bolster project risk management.

Earlier, arranged by Goldman Sachs, Applied Digital established a $350 million secured revolving credit facility with a $200 million accordion feature—providing up to $550 million of liquidity—and signed a memorandum of understanding to transfer the lease of Polaris Posi 1 Building 3 to CoreWeave, an investment-grade subsidiary. These measures proactively strengthen liquidity and optimize the company’s capital structure for expanding its AI and high-performance computing infrastructure.

Most recently, the company secured a 210 MW long-term lease at its Delta Posi 2 campus in the southern U.S. and a 15-year lease with an investment-grade hyperscale customer at Delta Posi 1. These agreements lift total contracted lease revenues to $23 billion and drove the stock up roughly 7–9% in a single trading day.

With a combined pipeline of long-term leases and development agreements now totaling $36 billion, investors are closely watching how the 7% fixed-rate notes and large-scale project financing will affect Applied Digital’s future profitability and leverage.

Applied Digital designs, builds, and operates dedicated data center campuses across North America for AI and high-performance computing. Its infrastructure-as-a-service model relies on long-term leases—ranging from several years to decades—with hyperscalers such as CoreWeave and major U.S. cloud and big-tech firms, generating recurring rental income.

As generative AI drives surging demand for power, cooling, and GPU infrastructure, Applied Digital and a select few peers are emerging as key investment targets in the U.S. AI data center sector, backed by multibillion-dollar, long-term contracts.