A $300 million senior secured bridge facility has been closed to support continued construction of a third artificial intelligence data center at the Polaris Forge 1 campus in Ellendale, North Dakota. The financing will fund ongoing development work on the next phase of the large-scale AI infrastructure project, which is being built to support high-performance computing, cloud, and AI workloads.
Applied Digital Corporation on May 5, 2026 confirmed that the facility consists of a 364-day term loan led by Goldman Sachs, priced at SOFR plus 275 basis points and secured by project assets. The structure allows for prepayment without penalty, providing flexibility as the project advances toward additional long-term financing arrangements.
The capital will be directed toward construction of the third AI data center within the Polaris Forge 1 campus, a multi-phase development designed to scale computing capacity for artificial intelligence applications. The company also indicated that additional financing will be required to complete the broader buildout of the facility.
“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.”
Polaris Forge 1
Polaris Forge 1 in Ellendale is being developed as a large-scale AI data center campus built in phases to support growing demand for compute-intensive workloads. The project forms part of a broader infrastructure strategy centered on delivering high-density, AI-optimized data center capacity across multiple buildings.
The new financing underscores a staged capital approach, where funding is aligned with construction progress, allowing each phase of development to be supported while maintaining flexibility for future refinancing and expansion.
Recent activity in the U.S. AI data center sector shows a growing pipeline of projects advancing through both financing and customer-backed development models. In Alabama, the Digi Power X Columbiana AI data center project enters construction after a $1.1 billion long-term colocation agreement with Cerebras Systems, which anchors the buildout of a 40 MW facility. Together, these developments highlight how AI infrastructure expansion relies on either secured demand commitments or structured project financing to move large-scale buildouts forward.
Factsheet: Polaris Forge 1 – Third AI Data Center Financing (Ellendale, North Dakota)
Project: Polaris Forge 1 – Third AI Data Center
Location: Ellendale, North Dakota, USA
Financing:
- $300 million senior secured bridge facility
- Lead arranger: Goldman Sachs
- Structure: 364-day term loan
- Pricing: SOFR + 275 bps
- Secured by project assets
- Prepayable without penalty
Developer:
Applied Digital Corporation
Purpose:
- Funds construction and development of the third AI data center at Polaris Forge 1
- Supports phased expansion of AI compute capacity
Campus Overview:
- Large-scale AI data center campus
- Built for AI, cloud, and high-performance computing workloads
- Multi-phase development structure
Development Strategy:
- Financing aligned with construction milestones
- Additional financing expected for full buildout
- Flexibility to transition to long-term financing
Status:
- Third data center under active development
- Construction funding now secured via bridge facility
