Macquarie Asset Management (MAM), the asset management division of Macquarie Group, has committed to investing up to US$5 billion (A$8 billion) in high-performance computing (HPC) data centres developed by Applied Digital Corporation, a leading US-based technology company. The investment forms part of a strategic financing facility aimed at scaling Applied Digital’s data centre operations.
Investment Details:
MAM’s funds will invest up to US$900 million in Applied Digital’s Ellendale HPC data centre campus in North Dakota. The financing will be used to complete the campus construction, repay $180 million in bridge debt, recover $300 million in equity, and cover other project-related costs. In addition to this initial funding, MAM holds a right of first refusal for further investments in Applied Digital’s future data centre projects, which could total up to an additional $4.1 billion over the next 30 months.
Strategic Significance:
The partnership is a key step for Applied Digital as it aims to become a leader in the Tier 3 data centre sector, particularly for clients involved in artificial intelligence (AI) and other HPC applications. With access to a substantial near-term power portfolio across North America, the Ellendale campus is positioned as a prime location for scaling up AI infrastructure.
Anton Moldan, Senior Managing Director at MAM, highlighted the opportunity to build on the significant progress already made at the Ellendale campus, noting the compelling nature of the investment for MAM and its potential hyperscale customers. MAM’s global experience in managing data centre platforms positions it to support Applied Digital’s growth in the rapidly expanding HPC market.
CEO Comments:
Wes Cummins, Chairman and CEO of Applied Digital, expressed confidence in the partnership, stating that the financing facility and the company’s significant stake in HPC assets would provide the resources needed to accelerate its development and solidify its position in the sector.
Market Impact:
Shares of Applied Digital (Nasdaq: APLD) saw a notable increase following the announcement, closing 9.98% higher at US$8.54, reflecting investor optimism about the partnership and future prospects. Meanwhile, Macquarie Group (ASX: MQG) shares closed slightly down at A$225.28, with the company maintaining a market value of A$85.86 billion.
This investment further solidifies Macquarie’s position as a major player in the growing data centre and technology infrastructure market, which continues to see increasing demand driven by advancements in AI and other high-performance computing applications.
