Applied Digital Corporation (NASDAQ: APLD) has successfully secured a $16 million loan for its 10MW Jamestown HPC data center campus. The loan, with a 5-year term, was obtained through a secured agreement with the Bank of North Dakota and Cornerstone Bank. This financing will be utilized to support the operations of the standalone data center, aimed at housing graphics processing units (GPUs) and facilitating various HPC/AI applications.
The financing arrangement underscores the company's robust banking relationships and its commitment to expanding digital infrastructure. David Rench, CFO of Applied Digital, expressed pride in partnering with the Bank of North Dakota, recognizing their ongoing support for digital infrastructure development in the state.
Applied Digital's next-generation data centers are specifically designed and constructed to host HPC/AI applications, offering cost-effective and high-efficiency solutions compared to traditional data centers. These facilities possess the power-density and cooling capabilities required for AI/ML workloads, distinguishing them from higher-cost, conventional data centers.
The company's strategic focus on next-generation data centers aligns with its objective of providing digital infrastructure solutions to the rapidly expanding high-performance computing (HPC) industry. Applied Digital Corporation's dedication to innovation and growth in North America's digital infrastructure landscape is evident in its recent financing achievement. Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $4.04. Check out the company's full 8-K submission here.
