Applied Digital Secures $350M Revolver as CoreWeave Lease Move Takes Shape

Applied Digital has closed a $350 million revolving credit facility arranged by Goldman Sachs, giving the AI data center developer additional liquidity as it works through a growing pipeline of leased and pre-leased campuses.

The Dallas-based company said Monday that the facility, which closed on May 29, includes an accordion option for another $200 million, potentially lifting total borrowing capacity to $550 million. The proceeds will be used to support pre- and post-lease development of Applied Digital’s data center projects, working capital and general corporate purposes.

The three-year facility matures on May 29, 2029, and bears interest at SOFR plus 225 basis points, or the alternative base rate plus 125 basis points. It is secured by certain non-data center project assets, according to the announcement.

The financing gives Applied Digital a broader corporate-level liquidity tool as the company continues to build out large-scale AI data center campuses under long-term colocation leases. It also follows a separate $300 million senior secured bridge facility the company closed in May to fund the third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. That bridge loan, also led by Goldman Sachs, carried a one-year maturity and an interest rate of SOFR plus 275 basis points.

Taken together, the facilities show how Applied Digital is layering different forms of capital around its project pipeline: shorter-term project debt for specific construction needs and a revolving facility to fund development activity across the platform.

Applied Digital has become one of the more visible public-market proxies for the AI infrastructure buildout, after shifting away from its earlier bitcoin mining roots toward high-performance computing data centers. The company’s growth has been anchored by long-term leases with CoreWeave (NASDAQ: CRWV) and other hyperscale customers, giving lenders more visibility into future cash flows once projects are delivered.

In June 2025, Applied Digital signed two 15-year lease agreements with CoreWeave for 250 megawatts of critical IT load at its Ellendale campus, a deal the company said could generate about $7 billion in revenue over the lease term. It later added another 150 megawatts with CoreWeave for the third building at Polaris Forge 1, bringing that campus to 400 megawatts of contracted capacity.

The latest financing also includes a tenant-credit angle. Applied Digital said it entered into a memorandum of understanding with CoreWeave on June 5 to assign the lease for Building 3 at Polaris Forge 1 to a CoreWeave subsidiary, if that subsidiary obtains an investment-grade credit rating.

That provision matters because tenant credit quality has become central to AI data center financing. Developers such as Applied Digital are trying to convert long-term demand from AI cloud providers and hyperscalers into lower-cost capital for construction. Investment-grade tenant backing can make those leases more financeable, helping developers borrow against future contracted cash flows while reducing perceived counterparty risk.

Applied Digital’s announcement comes during a wave of debt and structured financing across the AI data center sector, as companies race to secure land, power, cooling equipment and construction capital. The sector’s financing needs have expanded quickly because AI facilities require large upfront capital outlays before revenue begins, while project economics depend heavily on power availability, construction timelines and the credit quality of contracted tenants.

The company has also been expanding beyond Polaris Forge 1. In April, Applied Digital announced a 15-year, $7.5 billion lease with an unnamed U.S.-based hyperscaler for 300 megawatts at its Delta Forge 1 campus, a 430-megawatt site expected to begin operations in mid-2027. That deal lifted Applied Digital’s total contracted lease revenue to more than $23 billion, with more than half backed by investment-grade customers, according to the company.

The new revolver does not eliminate execution risk. Applied Digital still needs to deliver campuses on schedule, manage rising construction and equipment costs, and secure enough power infrastructure to support its expansion. Across U.S. power markets, the surge in data center demand has intensified scrutiny over who pays for grid upgrades and new generation needed to serve large loads.

But the revolving facility adds another piece to Applied Digital’s capital stack at a time when access to flexible development financing has become a key competitive advantage. For AI data center builders, the market is increasingly distinguishing between companies with signed long-term leases, bankable tenants and credible project financing, and those still trying to turn power pipelines into contracted revenue.

Goldman Sachs served as lead left arranger, bookrunner and first national bank of Omaha, while Mizuho Bank, Royal Bank of Canada, Banco Santander and Wells Fargo Bank served as joint lead arrangers and joint bookrunners. First National Bank of Omaha is the administrative agent and collateral agent under the credit facility.