Applied Digital APLD is undertaking a significant expansion initiative aimed at bolstering its hyperscale infrastructure through enhancements at its Ellendale campus and the establishment of vital partnerships. In the third quarter of fiscal 2025, APLD secured a groundbreaking investment commitment of up to $5 billion from Macquarie Asset Management, coupled with a $375 million financing deal with SMBC. These financial transactions highlight a strong endorsement for APLD’s infrastructure development and scalability potential.
The development of the Ellendale campus is pivotal to APLD’s vision for next-generation data centers. The first building, designed to provide 100 megawatts of critical IT load, is projected to become operational by the end of 2025. Meanwhile, construction of the second building, which will contribute an additional 150 megawatts, is ongoing, while planning for the third building is in progress with necessary power and supply chains secured. Ultimately, this campus is expected to offer over 400 megawatts of initial IT capacity. Management is actively engaged in discussions with hyperscale tenants, reflecting strong demand from major cloud providers.
This ambitious expansion aligns with APLD’s broader goal of emerging as a leading provider of high-performance computing (HPC) infrastructure. The company is also considering strategic alternatives for its Cloud Services business to minimize potential conflicts with hyperscale clients, while it aims to transition toward a REIT structure in the long term. With construction advancing as scheduled and substantial institutional backing, APLD is strategically positioning itself as a significant player in the AI-driven data hosting market.
APLD faces competition from other significant players in the industry. CoreWeave CRWV, focused on AI, recently raised over $1 billion to expand its footprint in GPU-powered data centers, aimed at meeting the surging demand for AI workloads. Equinix EQIX, another prominent competitor, announced a joint venture in October 2024 with GIC and CPP Investments, aimed at raising over $15 billion to enhance its xScale data centers in the United States by adding more than 1.5 gigawatts of capacity, reinforcing its commitment to support hyperscale clients.
On the financial front, shares of APLD have demonstrated remarkable resilience, with a surge of 67.1% year-to-date, contrasting with a 5% decline in the broader industry.
Overall, APLD’s strategic moves signal strong potential for growth and development in a sector that remains increasingly vital as digital needs continue to expand.