Initial $900 Million Investment in North Dakota’s Ellendale Campus
Macquarie Asset Management (MAM) has committed to investing up to $5 billion in Applied Digital, marking a transformative milestone for the data center company. The initial investment of $900 million will fund the development of Applied’s Ellendale campus in North Dakota, which is set to become a cornerstone for high-performance computing (HPC) and AI infrastructure.
Strategic Investment Details
Under the agreement, Macquarie’s investment vehicles will secure a 15% stake in Applied subsidiary APLD HPC Holdings LLC. The funding, structured as perpetual preferred equity units, is tied to executed leases of 1MW capacity per $2.25 million in equity contributions. This structure supports the full build-out of the 400MW Ellendale campus, with additional funds allocated to debt repayment and operational expenses.
Expansion Opportunities and Right of First Refusal
Macquarie has also secured the right of first refusal to invest an additional $4.1 billion over 30 months, enabling Applied to scale its pipeline of data center projects. Wes Cummins, chairman and CEO of Applied Digital, emphasized that this partnership positions the company for unprecedented growth, potentially enabling the construction of over 2GW of HPC data center capacity.
“This expanded relationship with MAM positions Applied Digital as one of the fastest-growing HPC data center developers in the United States,” Cummins stated. “We’re excited to establish ourselves as leaders in Tier 3 data center infrastructure, supporting world-class AI-driven applications.”
Focus on High-Performance Computing and AI
Applied Digital, originally focused on hosting cryptomining operations, is undergoing a strategic pivot toward AI and HPC. The Ellendale campus features two major facilities:
- ELN01: A 180MW facility dedicated to hosting cryptomining hardware.
- ELN02: A 369,000-square-foot, 100MW facility designed for HPC hosting, with plans for two additional buildings offering a combined 300MW.
This shift aligns with the growing demand for AI and HPC capabilities, supported by Nvidia Blackwell GPUs hosted on-site. The company also provides its own AI cloud services, solidifying its foothold in this rapidly evolving sector.
Macquarie’s Perspective on the Partnership
Anton Moldan, Senior Managing Director at MAM, expressed enthusiasm for the collaboration. “Applied Digital has a differentiated strategy and access to a unique near-term power portfolio across North America,” he said. “The Ellendale campus’s significant progress makes this an attractive opportunity for hyperscale customers seeking scalable AI solutions.”
Existing and Planned Infrastructure
Applied Digital’s current portfolio includes:
- 100MW Facility in Jamestown, North Dakota: Operational since 2022 with a second building for HPC hosting under development.
- 200MW Site in Garden City, Texas: Sold to Marathon Digital in 2024.
- 200MW Facility in Iowa: In planning stages.
The company has over 280MW of operational cryptomining capacity and more than 1GW of planned HPC projects, underscoring its ambition to lead in the AI and HPC space.
FAQ
What is the scope of Macquarie’s investment in Applied Digital?
Macquarie Asset Management plans to invest up to $5 billion, starting with $900 million for the Ellendale campus in North Dakota. The funding supports HPC and AI data center development.
How will Applied Digital utilize the investment?
The funds will finance the build-out of the Ellendale campus, pay down existing debt, and support operational expenses. Additional investments may expand the company’s data center projects.
What facilities are included in the Ellendale campus?
The campus comprises ELN01 (180MW for cryptomining) and ELN02 (100MW for HPC hosting), with plans for two more buildings offering a combined 300MW capacity.
Why is Applied Digital pivoting from cryptomining to AI and HPC?
The shift addresses the growing demand for AI and HPC infrastructure, leveraging the company’s expertise and existing assets to support high-performance applications.
What sets Applied Digital apart in the data center industry?
Applied Digital’s strategic focus on AI and HPC, access to a robust power portfolio, and partnerships with industry leaders position it as a frontrunner in Tier 3 data center infrastructure development.
