"Applied Digital Secures $5 Billion Investment from Macquarie for AI Data Center Expansion"

Applied Digital, a Dallas-based designer and operator of digital infrastructure, has secured a substantial investment from Macquarie Asset Management to expand its AI-focused data centers. Below is a summary of the key articles covering this development:

Macquarie Group Invests Up to $5 Billion in Applied Digital's AI Data Centers

Macquarie Group's asset management unit has entered into a significant investment and funding agreement with Applied Digital Corporation worth up to $5 billion USD. The deal involves an initial investment of $900 million USD in Applied Digital's Ellendale High Performance Computing (HPC) data center and grants Macquarie the right to invest an additional $4.1 billion USD in future projects. This agreement also includes a perpetual preferred equity financing facility. Applied Digital's chairman and CEO, Wes Cummins, emphasized the strategic importance of this investment to meet a projected 36-gigawatt power shortfall for US data centers by 2028.

theaustralian

Applied Digital Stock Surges Following Macquarie's Investment Announcement

Applied Digital's stock surged after announcing a substantial investment from Macquarie Asset Management. The Australian fund manager plans to invest up to $5 billion in Applied Digital's high-performance computing (HPC) data centers. Specifically, Macquarie will invest $900 million in the Ellendale HPC data center in North Dakota and potentially an additional $4.1 billion in future projects, acquiring a 15% stake in the HPC business, while Applied Digital retains the remaining 85%. This follows a previous investment from Nvidia to support advanced digital infrastructure for high-performance computing and AI applications. Applied Digital's shares rose 16% to $9.05 and have increased 20% over the past year. The company is set to report its second-quarter fiscal 2025 results soon.

Investopedia

Applied Digital Gains Support from Macquarie and Nvidia for AI Data Center Expansion

Applied Digital's stock surged by 17% to $9.09 after the AI data center operator announced it would receive a significant investment of up to $5 billion from Macquarie Asset Management. This partnership will see Macquarie investing $900 million initially in one of Applied Digital's high-performance computing (HPC) data center campuses, with the possibility of an additional $4.1 billion in future projects. Macquarie will acquire a 15% equity interest in the HPC business segment, with Applied Digital retaining an 85% stake. This development follows previous investments from Nvidia and Related Cos. totaling $160 million. Applied Digital's quarterly earnings report is due after the market closes on Tuesday.

Barron's

Macquarie to Invest Up to $5 Billion in Applied Digital's AI Data Centers

Australia's Macquarie Group will invest up to $5 billion in Applied Digital's AI data centers, acquiring a 15% stake in the technology company. This significant investment has led to a substantial rise in Applied Digital's shares by over 15% in premarket trading. Macquarie's asset management arm will initially invest up to $900 million in a data center campus in North Dakota, with the right of first refusal for an additional $4.1 billion in future centers over the next 30 months. This funding will enable Applied Digital to repay existing debt and reclaim equity investments, thereby supporting the construction of high-demand data centers. Applied Digital's shares have seen significant growth, tripling in the past two years, driven by investor interest in AI and data center providers. Microsoft also announced plans to invest around $80 billion in AI data centers in fiscal 2025. Applied Digital is expected to report its second-quarter results ... the same day.

Reuters

Macquarie Invests Up to $5 Billion in Applied Digital's AI Data Center Business

Investment firm Macquarie is to invest billions of dollars into data center firm Applied Digital. Macquarie Asset Management (MAM) is set to invest $5 billion into Applied, a cryptomining firm pivoting to AI and HPC data centers.

Data Center Dynamics

Nvidia and Other Investors Back Applied Digital With $160 Million in Funding

Artificial-intelligence chip giant Nvidia is joining other investors in a $160 million financing round for Applied Digital, a company that operates data centers and is expanding into AI services.

WSJ

Applied Digital Announces $160 Million Strategic Financing, Fueling Transformative Accelerated Compute and AI Infrastructure

This strategic financing underscores Applied Digital's position as a trusted pioneer in the accelerated compute space. With this added capital, Applied Digital is further strengthening its financial position to bring its transformative data center and GPU cloud solutions to market at scale.

Applied Digital Corporation