Macquarie to invest $5 billion in data center expansion

January 18, 2025 — Macquarie Asset Management (MAM) is making a significant investment in the future of high-performance computing (HPC). The global asset manager announced a $5 billion perpetual preferred equity financing facility for Applied Digital Corporation (Nasdaq: APLD), a leading designer, builder, and operator of next-generation digital infrastructure.

This strategic investment will fuel Applied Digital's expansion of its HPC data center platform, with a primary focus on completing the 400 MW Ellendale HPC Campus. Under the agreement, funds managed by MAM will invest up to $900 million in the Ellendale campus, with the potential to extend this investment to future HPC data center projects, totaling up to an additional $4.1 billion.

"We are excited to partner with Applied Digital to build and scale its HPC data center platform," said Anton Moldan, Senior Managing Director of Macquarie Asset Management. "Applied Digital has a differentiated strategy with access to a unique near-term power portfolio across North America in markets attractive for computing needs which address the most demanding AI and other HPC applications at scale. The significant progress at the Ellendale HPC campus makes this a very compelling opportunity for us as well as for potential hyperscale customers. With our global experience as an owner and manager of data center platforms, we see this as highly attractive opportunity to help build an industry-leading HPC data center company well positioned in these high growth segments of the market."

This investment underscores MAM's confidence in the burgeoning HPC market and Applied Digital's ability to capitalize on this growth.

Disclaimer: This article is based on the provided information and may not include all details or nuances of the agreement.

About Applied Digital

Applied Digital (Nasdaq: APLD) develops, builds and operates next-generation data centers and cloud infrastructure. The Company's purpose-built facilities are designed to support demanding AI/ML, blockchain, and HPC workloads.

About Macquarie Asset Management

Macquarie Asset Management is the asset management arm of Macquarie Group.

More News