Applied Digital Corporation (NASDAQ: APLD) closed a $300 million senior secured bridge facility led by Goldman Sachs to fund construction of its third AI data center at the Polaris Forge 1 campus in Ellendale, North Dakota.

The facility consists of a $300 million term loan with a 364-day maturity, bearing interest at the Secured Overnight Financing Rate plus 275 basis points. The loan can be prepaid at any time without premium and is secured by project assets.

Applied Digital expects to seek additional financing to complete the data center construction. The company operates data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads.

"This financing supports the continued development of our third AI data center at Polaris Forge 1 and reflects our disciplined approach to funding projects in line with construction timelines," said Saidal Mohmand, Chief Financial Officer of Applied Digital. "We are focused on procuring capital efficiently to move projects forward and bring capacity online as planned, while maintaining flexibility to transition to long-term financing."

The Dallas-based company was founded in 2021 and combines hyperscale expertise with proprietary waterless cooling technology. Applied Digital designs, builds and operates data centers in underserved communities through its Polaris Forge AI Factory model.

The information is based on a company press release statement.