Applied Digital Modifies Ellendale Data Center Leases Following CoreWeave Credit Upgrade
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Key Takeaways
- CoreWeave's refinanced debt for the Ellendale sites achieved an A3 investment-grade rating, up from BB.
- Applied Digital restructured leases for 250 MW of capacity across the ELN-02 and ELN-03 data centers.
- Lease obligations for specific data halls were transferred or assigned to a CoreWeave subsidiary.
- CoreWeave Parent provided springing guarantees and a $50 million letter of credit to strengthen the credit profile.
- The restructuring supports the interests of holders of Applied Digital's 9.250% notes due 2030.
On March 30, 2026, Applied Digital adjusted agreements for its ELN-02 and ELN-03 facilities, which provide 100 MW and 150 MW of capacity respectively. The move follows CoreWeave's debt refinancing, which saw its credit rating rise from BB to an A3 investment-grade level.
For the ELN-02 site, the company modified the existing lease with CoreWeave's parent entity to pause the term for two data halls. These halls were then leased to CoreWeave Compute Acquisition Co. VIII, LLC, a wholly owned subsidiary, under matching terms. Once the subsidiary lease ends, the original parent lease will resume for the full facility.
At the ELN-03 facility, CoreWeave Parent transferred its entire lease interest to the same subsidiary entity. While the parent company is no longer the direct lessee, it has issued unconditional springing guarantees for both the ELN-02 and ELN-03 subsidiary agreements.
Financial security measures include a $50 million letter of credit to be provided by CoreWeave within a 30-day window to back the ELN-02 parent lease. Applied Digital noted that these adjustments benefit investors holding its 9.250% notes maturing in 2030.
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