(MAM) is acquiring a 15% stake in Applied Digital鈥檚 high-performance computing (HPC) US data centre business and committing up to $5bn (鈧�4.9bn) to support its future development.
Funds managed by MAM have entered into a perpetual preferred equity financing agreement by investing up to $900m in Applied Digital鈥檚 Ellendale HPC data centre campus in a deal that allows for the investment of up to an additional $4.1bn across Applied Digital鈥檚 future HPC data centre pipeline.
Applied Digital said it intends to use the MAM investment, along with future project financing, to repay project-level debt and recover an estimated $300m of its equity investment in the Ellendale HPC Campus.
Wes Cummins, chairman and CEO of Applied Digital, said: 鈥漌e believe this expanded relationship with MAM positions Applied Digital for significant growth in the industry, establishing Applied Digital as one of the fastest-growing HPC data centre owners, operators and developers in the US. At today鈥檚 build costs, we will have a significant portion of the equity needed to construct over 2GW of HPC data centre capacity, including our Ellendale HPC Campus.鈥�
鈥淲ith an 85% ownership stake in both existing and future HPC assets and access to a project-level preferred equity financing facility sufficient to fund our HPC project pipeline, we believe we are poised for transformative progress.鈥�
Anton Moldan, senior MD of Macquarie Asset Management, said: 鈥淎pplied 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.鈥�
The significant progress at the Ellendale HPC campus makes this a very compelling opportunity for us as well as for potential hyperscale customers.鈥�
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