Applied Digital Secures $550M Credit Line to Fuel AI Data Center Expansion
Event summary
- Applied Digital closed a $350M revolving credit facility on May 29, 2026, with a $200M accordion option.
- Proceeds will support pre- and post-lease development of data center projects and general corporate purposes.
- The facility is secured by non-data center assets and matures on May 29, 2029, with interest rates tied to SOFR or ABR.
- Applied Digital also signed a MOU with CoreWeave for a lease assignment contingent on an investment-grade credit rating.
The big picture
Applied Digital's $550M credit facility underscores the capital-intensive nature of AI data center expansion and the strategic importance of securing flexible financing. The deal reflects confidence from leading financial institutions in Applied Digital's ability to execute on its growth plans, as demand for high-performance computing infrastructure continues to surge. The facility's structure and the CoreWeave MOU highlight the company's focus on balancing aggressive expansion with financial discipline.
What we're watching
- Execution Risk
- How Applied Digital will deploy the $550M credit line to advance its development pipeline while maintaining disciplined capital allocation.
- Customer Dynamics
- Whether CoreWeave's potential lease assignment will materialize and its impact on Applied Digital's revenue stream.
- Market Positioning
- The pace at which Applied Digital can scale its AI-focused data center platform amid accelerating demand for high-performance computing infrastructure.
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