Applied Digital Corp. (NASDAQ: APLD) completed a $1.59 billion private offering of 7.000% senior secured notes due in 2031 on June 18. The proceeds will fund the development of 150 megawatts of critical IT load at the company's Polaris Forge 1 AI data center campus in Ellendale, North Dakota, and will also be used to settle a $300 million bridge loan previously provided by Goldman Sachs.

The notes carry an annual interest rate of 7%, payable semi-annually, and are secured by first-priority liens on the issuer's assets. This financing replaces shorter-term construction debt with five-year capital, providing a stable funding foundation for continued expansion of the Ellendale site, which is anchored by long-term leases with major tenant CoreWeave. Applied Digital has also provided completion guarantees for the project, ensuring that the necessary funding is available to meet development timelines.

Applied Digital builds and operates digital infrastructure for AI and computing companies in North America, providing data centers and GPU computing solutions. The company is headquartered in Dallas, Texas, and was founded in 2021 by Wes Cummins and Jason Zhang.