Applied Digital Targets $2.15B Bond Sale for North Dakota AI Data Center

Applied Digital plans to raise $2.15 billion through a private offering of senior secured notes, marking the latest project financing tied to the buildout of AI infrastructure this year.

The company said on Monday that its subsidiary PLD ComputeCo 2 intends to issue senior secured notes due 2031, with proceeds to be used to fund the development and construction of 200 megawatts of critical IT load at Polaris Forge 2, its AI factory campus in Harwood, North Dakota, as well as to fund project accounts and related expenses.

The notes will be fully and unconditionally guaranteed by existing and future subsidiaries tied to the Polaris Forge 2 project. They will be secured by first-priority liens on substantially all assets of APLD ComputeCo 2 and its guarantors, as well as equity interests held by its parent entity. Applied Digital said it will provide customary completion guarantees to ensure the project is delivered on time.

The proposed 2031 notes would follow Applied Digital’s November 2025 deal, when a separate subsidiary raised $2.35 billion of senior secured notes due 2030 with a 9.25% coupon.

The proposed bond sale also comes amid a surge in large-scale debt financings across the AI and data center sector. Last week’s Miner Weekly issue highlighted roughly $33 billion in loan deals arranged or sought by AI infrastructure and related compute operators over the past year, underscoring how capital-intensive the current expansion cycle has become.

Those financings have ranged from bank-led delayed-draw term loans backed by hyperscaler contracts to high-yield bond offerings from both bitcoin miners pivoting into high-performance computing and pure-play AI cloud providers. The wave of borrowing reflects escalating demand for power and rack-ready capacity as AI model training and inference workloads continue to scale.

Applied Digital, which historically operated in the cryptocurrency hosting space, has been repositioning itself as a builder and operator of high-performance data centers designed for AI, networking and blockchain workloads. The Polaris Forge campus represents a key component of that shift, with the 200 MW buildout at Polaris Forge 2 adding to the company’s growing pipeline of AI-oriented capacity.