Applied Digital Plans $2.35B Senior Notes to Fund North Dakota HPC Data Centers

Applied Digital plans to raise $2.35 billion in senior secured notes as the bitcoin mining colocation host accelerates construction of two high-performance computing (HPC) data centers in North Dakota.

Applied Digital said on Monday that its subsidiary APLD ComputeCo LLC will issue the notes due 2030 in a private placement to qualified institutional buyers. Proceeds will help fund its 100-megawatt and 150-megawatt facilities—dubbed ELN-02 and ELN-03—at the company’s 400-MW Ellendale campus, known as Polaris Forge 1.

Funds will also be used to repay outstanding debt under an existing credit agreement with Sumitomo Mitsui Banking Corporation, establish a debt service reserve, and cover related transaction expenses.

The notes will be guaranteed by Applied Digital’s operating subsidiaries and secured by first-priority liens on substantially all assets tied to the Ellendale project. Applied Digital will also provide completion guarantees to ensure the new facilities are finished on schedule.

The planned raise contributes to a wave of large-scale debt financings among bitcoin mining and digital infrastructure firms seeking to capitalize on the HPC and AI boom.

In recent months, fellow bitcoin miners-turned-data-center operators have executed similar offerings: Terawulf completed a $3.2 billion senior secured notes deal to fund its AI build-out, while Cipher Mining announced a $1.4 billion issue last week to finance its 300-MW Barber Lake HPC facility in Texas.

Applied Digital’s Ellendale campus, which totals 400 MW of planned capacity, represents one of the largest data center developments in the U.S. Midwest aimed at servicing AI, cloud, and blockchain workloads.

The company said the offering remains subject to market conditions and did not specify a target completion date. Terawulf and Cipher recently issued the senior secured notes at a cost of around 7%.