Applied Digital Announces Energizing of Facility in Ellendale, North Dakota
March 07 2023 - 8:00AM
Applied Digital Corporation
(Nasdaq: APLD) (“Applied
Digital” or the “Company”), a designer, builder and
operator of next-generation digital infrastructure that is designed
for High Performance Computing (“HPC”) applications, today
announced the energizing of its 180-megawatt (MW) facility in
Ellendale, North Dakota. The Company broke ground on the facility
on September 8, 2022 and is now powering and operating the new site
only six months after initial work began. The Ellendale
next-generation datacenter marks the second facility within North
Dakota for Applied Digital following the successful 100MW facility
in Jamestown that was energized in 2022.
Once fully energized, this location will bring the
Company to 280MW of total hosting capacity across its facilities in
North Dakota, all of which are contracted out to customers on
multi-year terms. Applied Digital expects to hire approximately 45
community members from Ellendale and surrounding areas to operate
the facility.
“The energization of this datacenter would not have
been possible without the continued support of the Ellendale
community and the team we have on site,” said Applied Digital CEO
and Chairman, Wes Cummins. “We’ve been diligently working toward
providing digital infrastructure solutions that provide
differentiated services from traditional datacenters. Our Ellendale
site is located where there is significant grid congestion that
results in wind farms in the area curtailing output, making it an
ideal location for our style of curtailable
operation.”
The Company previously entered into a five-year
Energy Service Agreement (ESA) with a utility partner in Dickey
County servicing Ellendale, North Dakota. In conjunction with the
execution of the ESA, Applied Digital and Marathon Digital Holdings
(Nasdaq: MARA) mutually executed the option for an additional 70MW
of hosting at the Ellendale facility. This brings the contracted
capacity with Marathon to 276MW and total contracted hosting for
the Company to nearly 500MW.
The Ellendale facility was financed through a loan
agreement (the “Loan”) with Starion Bank with terms including a
principal amount of up to $20.0 million with a maturity date of
February 3, 2028. The proceeds of the Loan will be used to fund
capital expenditures associated with the Ellendale
buildout.
A ribbon cutting ceremony will be held in the Spring and will
include notable members from the local Ellendale community and the
executive team of Applied Digital. For more information about the
ribbon cutting ceremony, email
APLD@gatewayir.com.
Garden City Update We continue to
work through technical details of our 200 MW site in Garden City,
TX and currently do not have a firm turn-on date. The primary
technical hurdle remaining is metering of energy on the site due to
its unique behind-the-meter aspect. We expect to resolve this in
the coming weeks. Construction is complete and over 130 MW of
miners are installed and ready to energize as soon as these
technical details are resolved.
About Applied Digital Applied Digital
(Nasdaq: APLD) designs, develops and operates next-generation
datacenters across North America to provide digital infrastructure
solutions to the rapidly growing high performance computing (HPC)
industry. Find more information at www.applieddigital.com. Follow
us on Twitter at @APLDdigital.
Forward-Looking Statements This release
contains "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995 regarding, among other
things, future operating and financial performance, product
development, market position, business strategy and objectives.
These statements use words, and variations of words, such as
"continue," "build," "future," "increase," "drive," "believe,"
"look," "ahead," "confident," "deliver," "outlook," "expect," and
"predict." Other examples of forward-looking statements may
include, but are not limited to, (i) statements of Company plans
and objectives, including our evolving business model, or estimates
or predictions of actions by suppliers, (ii) statements of future
economic performance, and (iii) statements of assumptions
underlying other statements and statements about the Company or its
business. You are cautioned not to rely on these forward-looking
statements. These statements are based on current expectations of
future events and thus are inherently subject to uncertainty. If
underlying assumptions prove inaccurate or known or unknown risks
or uncertainties materialize, actual results could vary materially
from the Company's expectations and projections. These risks,
uncertainties, and other factors include: decline in demand for our
products and services; the volatility of the crypto asset industry;
the inability to comply with developments and changes in
regulation; cash flow and access to capital; and maintenance of
third party relationships. Information in this release is as of the
dates and time periods indicated herein, and the Company does not
undertake to update any of the information contained in these
materials, except as required by law.
Investor Relations Contacts Matt
Glover or Alex Kovtun Gateway Group,
Inc. (949) 574-3860 APLD@gatewayir.com
Media Contact Robert Collins or
Brenlyn Motlagh Gateway Group, Inc. (949)
899.3135 APLD@gatewayir.com
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