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Applied Digital Adds to AI Junk-Bond Surge With Offering

Gerson Freitas Jr, Gowri Gurumurthy
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⚡ Quantum Brief
Applied Digital Corp. is raising $2.15 billion through a junk bond sale to fund AI infrastructure expansion, marking the latest high-yield debt offering tied to the accelerating AI sector. The proceeds will primarily finance a 200-megawatt data center in North Dakota, underscoring the growing demand for energy-intensive AI computing facilities. The five-year notes are expected to price this week, reflecting investor appetite for AI-related debt despite higher risk profiles associated with junk bonds. This offering adds to a broader surge in AI-driven financing, as companies race to build infrastructure supporting next-generation computational workloads. The move highlights how AI’s rapid scaling is reshaping corporate debt markets, with tech firms leveraging high-yield bonds to secure capital for expansion.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The AI Race:Applied Digital Corp. is seeking to raise $2.15 billion in a junk bond sale, the latest in a wave of debt financing tied to the buildout of artificial intelligence infrastructure.Proceeds will help fund construction of a 200-megawatt data center in North Dakota, the company said in a statementBloomberg Terminal. The five-year notes are expected to price later this week, according to a person with direct knowledge of the matter.

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Source: Bloomberg Technology

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