Macquarie to Invest Up to $5 Billion in Applied Digital’s AI Data Centers

Australia’s Macquarie Group has committed to investing up to $5 billion in Applied Digital’s high-performance computing business, acquiring a 15% stake in the company amid surging demand for artificial intelligence (AI) infrastructure. The announcement, made on Tuesday, sent Applied Digital’s shares soaring by 20% in pre-market trading.

Macquarie’s asset management division has initially pledged $900 million to develop a state-of-the-art data center campus in North Dakota. Additionally, Applied Digital retains the right of first refusal to access an additional $4.1 billion in investments for future data center projects over the next 30 months.

Wes Cummins, CEO of Dallas-based Applied Digital, emphasized that the investment ensures sufficient equity to construct cutting-edge data centers capable of handling the high-power demands of AI applications. The company will use the funds to repay debt incurred during the development of its North Dakota facilities and recover over $300 million of its equity investment in the project.

The move comes amid a broader boom in AI-driven investments, spurred by the rapid growth of generative AI models such as ChatGPT. Computing infrastructure providers like Applied Digital have witnessed substantial interest from businesses seeking to develop their own AI models and gain a competitive edge.

In line with this trend, Microsoft recently announced plans to allocate $80 billion in fiscal 2025 to AI data centers, reflecting the growing computational needs of the industry.

Applied Digital has seen its shares triple over the past two years as investors bet on robust growth in AI and data center infrastructure. The company is scheduled to report its second-quarter earnings later on Tuesday.