Applied Digital, a designer, builder and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads, today closed a $300 million senior secured bridge facility led by Goldman Sachs.
The facility is intended to fund the continued development and construction of the company’s third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. Applied Digital expects to seek additional financing to fund the completion of construction.
The bridge facility consists of a $300 million term loan with a 364-day maturity, bearing interest at the Secured Overnight Financing Rate (SOFR) plus 275 basis points. The loan is prepayable at any time without premium and is secured by the assets of the project.
“This financing supports the continued development of our third AI data center at Polaris Forge 1 and reflects our disciplined approach to funding projects in line with construction timelines,” Saidal Mohmand, chief financial officer of Applied Digital, said. “We are focused on procuring capital efficiently to move projects forward and bring capacity online as planned, while maintaining flexibility to transition to long-term financing.”
