Applied Digital Secures $300M Bridge Loan to Fast-Track AI Data Center Development
Applied Digital has secured a $300 million senior secured bridge loan led by Goldman Sachs to expedite the construction of its next 150 MW AI data center, in addition to an existing $2.15 billion in notes and a $7.5 billion hyperscaler lease.
Summary
- Applied Digital has finalized a $300 million senior secured bridge loan, spearheaded by Goldman Sachs, to fund the construction of a new AI data center campus.
- This financing is secured by project assets, adheres to standard market terms, and allows for early repayment without penalties while the company seeks longer-term financing.
- This bridge loan is in addition to the previously arranged $2.15 billion offering of senior secured notes to finance the 200 MW of AI infrastructure already leased to Oracle.
Bitcoin mining hosting and cloud services provider Applied Digital announced the closure of a $300 million senior secured bridge loan to further the development of a new AI data center, following its April announcement regarding a 15-year, $7.5 billion lease with an unnamed U.S. investment-grade hyperscaler.
Company reports suggest that the bridge loan is intended to support the ongoing development of the 150 MW “Building 3” data center at its Polaris Forge 1 campus, which is part of a larger AI Factory initiative that now encompasses a 430 MW facility at Delta Forge 1.
The loan is backed by project assets and, as stated by Applied Digital, can be prepaid “at any time without penalty,” allowing the firm to refinance into longer-term agreements once it secures permanent financing.
Management has indicated plans to add a corresponding $300 million senior secured revolving credit facility, potentially bringing the total new credit lines to $600 million to address pre-lease and post-lease development, working capital, and transaction costs across its AI and high-performance computing initiatives.
From Bitcoin Hosting to AI Infrastructure
Applied Digital, trading on Nasdaq as APLD, initially focused on constructing and operating data centers for Bitcoin and crypto mining clients, with 106 MW and 180 MW facilities in Jamestown and Ellendale, North Dakota, expected to operate 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 utilized 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 contract worth approximately $5 billion.
The new bridge loan adds to that financing structure, effectively providing upfront capital for the 150 MW expansion of Polaris Forge 1 while Applied Digital collaborates with lenders to establish a longer-term solution that aligns with its hyperscaler leases’ 15-year terms.
A recent crypto.news briefing detailed how the $7.5 billion AI campus lease offers Applied Digital secured revenue visibility through 2041, facilitating the integration of project-financing-style debt.
Furthermore, another crypto.news overview indicated that the company’s combined approach for a $300 million bridge and $300 million revolver aims to “mitigate development risk” as it transitions from crypto hosting to comprehensive AI infrastructure.
A separate crypto.news analysis emphasized how a prior development loan from Macquarie assisted in financing early-stage AI factory campuses, a strategy that is now being replicated at a larger scale with Goldman Sachs and a wider bank syndicate.